assurant standard investor presentation q416 final 3.6 · (3) global preneed operating roe target...

1

Investor Presentation

Fourth Quarter 2016

2Investor Day 2016

Some of the statements included in this presentation, particularly those

anticipating future financial performance and financial objectives,

targets, goals and outlook, business prospects, growth and operating

strategies, and key drivers and initiatives, and similar matters, are

forward-looking statements within the meaning of the U.S. Private

Securities Litigation Reform Act of 1995.

Refer to Exhibit 1 for a reconciliation of non-GAAP financial measures to

the most comparable GAAP financial measures.

Please refer to Exhibit 2 of this presentation, which identifies risk

factors that could cause our actual results to differ materially from

those currently estimated by management, and provides information on

where you can find a more detailed discussion of these risk factors in

our SEC filings.

Safe Harbor Statement

3Investor Day 2016

Assurant’s Vision

A leading provider of

Housing and Lifestyle

risk management solutions

with a proven record of outperformance.

4Investor Day 2016

We Are Focused on Two Key Markets

Key Housing Offerings

• Mortgage Solutions

• Multi-family Housing

• Lender-placed Insurance

Lifestyle: The Goods They Buy

~63% of FY 2016 Revenue1

Housing: Where People Live

~37% of FY 2016 Revenue1

(1) Full year 2016 revenue of $6.2 billion includes net earned premiums and fees and other income. Excludes Assurant Health runoff operations, Assurant Employee Benefits and Assurant Corporate & Other.

Key Lifestyle Offerings

• Connected Living including Mobile

• Vehicle Protection

• Pre-funded Funeral Insurance

5Investor Day 2016

Leadership Positions Built on Strong Foundation

Lender-placed insurance, tracking 36M mortgage loans nationwide

Multi-family housing with ~1.5M renters nationwide

Mobile protection offerings with ~32M covered devices worldwide

Pre-funded funeral insurance with nearly 2M policies in North America

Vehicle protection offerings on more than 12M autos worldwide

Integrated provider delivering B2B2C solutions

Deep consumer insights

Management of complex administrative and delivery networks

Compliance expertise

Seamless customer experience

Core Capabilities A Leading Provider

Note: Information as of December 31, 2016 unless otherwise indicated.

6Investor Day 2016

Aligning Resources to Greatest Growth Potential

Note: Revenue consists of net earned premiums, fees and other income.

Targeted Growth

Core

Non-Growth

LifestyleHousing



• Connected Living:

- Mobile

- Extended service contracts

Economic Model

• Fee-based and capital-light offerings

• $3.2B in FY 2016 revenue

• Risk-based offerings


• Risk-based offerings


• Lender-placed Insurance

• Vehicle Protection

• Pre-funded Funeral Insurance

• Manufactured Housing • Credit Insurance & Other

7Investor Day 2016

Macro and Industry Trends Bolster Confidence in Our Targeted Growth Areas

Targeted Growth Areas

• Large and growing

global market

• Expanding beyond

traditional insurance

• Growing market and increased penetration

• Evolving market dynamics creating new opportunities

Connected Living, including Mobile

Multi-Family Housing

Mortgage Solutions

8Investor Day 2016

Unique Benefits of Integrated Risk Offerings

Distinct Competitive Advantages and Attractive Economics

• Business model integration

• Deeper consumer insights

• Product innovation

• Client entanglement

• Diverse mix of revenue

• Attractive returns

• More predictable earnings

Economic BenefitsOperating Benefits

9Investor Day 2016

Long-term Financial Objectives

Grow net operating income long-term

With more diversified,

predictable earnings

15%+ average annual growth in operating EPS(1) over time

Through combination of net operating

income growth excluding catastrophe

losses, and disciplined capital deployment

Expand operating ROE(2) to 15%+ over time

With higher mix of fee-based,

capital-light offerings

(1) Refers to net operating income per diluted share excluding reportable catastrophe losses.(2) Refers to operating return on equity excluding reportable catastrophe losses and AOCI.

Note: The long-term financial objectives constitute forward-looking information and the company believes that a quantitative reconciliation of such forward-looking information to the most comparable GAAP measure cannot be made available without unreasonable efforts. A reconciliation would require the company to quantify amortization of deferred gains and gains on disposal of businesses, net realized gains on investments, and others items that cannot be reliably quantified due to the combination of variability and volatility of such components and may, depending on the size of the components, have a significant impact on the reconciliation. For the definitions, most directly comparable GAAP measures and reconciliations of the present periods, refer to Exhibit 1 in the Appendix.

10Investor Day 2016

Grow Net Operating Income Long-Term

Note: Consists of segment earnings from Global Housing, excluding catastrophe losses, and Global Lifestyle. Excludes AH, AEB, Corporate and other, amortization of deferred gains on disposal of business, interest expense, among other adjustments. For the most directly comparable GAAP measures and a reconciliation for 2015, refer to Exhibit 1 in the Appendix. Information presented at Assurant Investor Day 2016 as of March 2016.

Net Operating Income Mix

2015 2020 Target

More Diversified, Predictable Earnings

� Lender-placed ex. catastrophe losses

� Risk-based

� Fee-based/Capital-light

Expected Results:

• Generate more diversified, higher quality earnings

• Mix shift toward more capital-light offerings, with lower volatility

• Lender-placed normalization more than offset by organic growth across Assurant’s portfolio

11Investor Day 2016

Grow Operating Earnings Per Diluted Share

Key Drivers:

• Net operating income growth

• Share repurchases and acquisitions

Considerations:

• Non-linear growth

- Portfolio and organizational realignment in 2016

- Normalization of lender-placed through 2018

- Investments in capabilities

- Pace of capital deployment

(1) Operating EPS excludes Assurant Health, Assurant Employee Benefits, amortization of deferred gain, reportable catastrophe losses, among other adjustments. For the most directly comparable GAAP measures and a reconciliation for 2015, refer to Exhibit 1 in the Appendix.

Double-Digit Growth Over Time

2020 Target2015 Operating EPS ex.

Catastrophe Losses1

$6.06

15%+ Average Annual Growth

12Investor Day 2016

Expand Operating Return on Equity

Key Drivers:

• Net operating income growth

• Capital efficient businesses

Considerations:

• Select acquisitions

• Investments in capabilities and

clients

(1) For the most directly comparable GAAP measures and a reconciliation, refer to Exhibit 1 in the Appendix. Operating ROE excludes Assurant Health, Assurant Employee Benefits, amortization of deferred gain, AOCI, reportable catastrophe losses, among other adjustments.

Driven by Higher Mix of Fee-Based, Capital-Light Offerings

2015 Operating ROE ex. AOCI and

Catastrophe Losses1

15%+

2020 Target

12%

13Investor Day 2016

Enterprise Targets Supported by Business Line Goals

(1) Connected Living pre-tax margin target increased from 8% to 9.5% due to a change in program structure for a large service contract client effective as of Q416.

(2) Includes assumption for catastrophe losses.

(3) Global Preneed operating ROE target decreased from 12% to 11% due to $140M goodwill allocation from former Solutions business.

Segment Long-Term Goals Long-Term Profitability Metrics Sensitivities

Global Lifestyle

Global Housing

20%+ operating ROE2

• 9.5%1 pre-tax margin for Connected Living globally

• 96-98% combined ratio for global Vehicle Protection and Credit

• Client mix

• Product and service mix

• Foreign exchange

• Catastrophe losses

• Segment targets

exclude:

- Acquisitions

- Enterprise-driven

expense initiatives

10% average annual

growth in net

operating income

• 15-20% combined pre-tax margin for Multi-family housing and Mortgage Solutions

• 86-90% combined ratio for Lender-placed and Manufactured Housing risk businesses1

Global Preneed11% operating ROE for Preneed3

14Investor Day 2016

Transition to New Organizational Model to Generate Efficiencies and Fund Investments

Finance, Procurement and IT Transformation

• Rationalization of IT infrastructure• Vendor management

Preliminary Target of

$100M Gross Savings

• Pension freeze effective March 1, 2016• Integration of key support functions

Address Residual Expenses from Health and Employee Benefits

Phase 1

Phase 3

Implement Business Organizational Framework

Phase 2

• Elimination of “siloed” operating structures

Beyond2015

15Investor Day 2016

Solid Financial Foundation Provides Flexibility

Note: All information is as of December 31, 2016.

(1) Excludes AOCI. This is a non-GAAP measure. GAAP equity included $ 0.1 of AOCI as of December 31, 2016. Debt to total capital ratio including AOCI would be 20.7%.

(2) $391 million available as of December 31, 2016.

Solid Balance Sheet Strong LiquidityExcellence in Risk

Management

$4.0 billion equity(1) Approximately $775 million corporate capital

Maintain risk buffer for tail events

21.0% debt-to-capital ratio(1)

Approximately $525 million deployable capital, excluding $250 million risk buffer

Multi-faceted catastrophereinsurance program

Limited callable liabilities$400 millionrevolving credit facilitythrough Sept. 2019(2)

Conservative investment portfolio

16Investor Day 2016

Specialty Businesses Generate Significant Cash Flow

Segment Dividends1

($ in Millions)

(1) Consists of dividends from operating subsidiaries to the holding company, net of infusions, and excluding acquisitions and divestitures.

(2) 2016 also includes sale proceeds and capital releases from Assurant Employee Benefits and dividends from Assurant Health wind-down totaling $1.35 billion.

$501

$550

$422 $374

$614

$840

$563 $582

$623

$454

$175

$315

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2

17Investor Day 2016

Strong Cash Flow Generation

>100%

Average 2010-2015

~100%

2020 Target

(1) Subject to the growth of the business and rating agency and capital requirements

(2) Consists of dividends from operating subsidiaries to the holding company, net of infusions, less interest expense, and other holding company expenses.

Key Drivers:

• Dividends from ongoing businesses

• Capital releases from normalization

of lender-placed

• Investments in core businesses

Segment Dividends2 as a Percentage of Segment Earnings

Segment Dividends to Approximate Segment Operating Earnings1

18Investor Day 2016

Strategic Capital Management

Increase Dividends

Capitalize Businesses

Share Repurchases

Invest in Growth

Capital Management Framework

Capit

al D

eplo

yment

Strong cash flow has allowed us to pursue our growth objectives while returning capital to shareholders

Capital Deployment2004 – 2016

� Shareholder dividends � Share repurchases

� Acquisitions � Capital infusions

11%

58%

15%

16%

19Investor Day 2016

Expect to Return Total of $1.5B to Shareholders in 2016-2017

• Intend to return proceeds from sale of Employee Benefits and dividends from Health (wind down of Health is now substantially complete) via share repurchases and common stock dividends

- In 2016, returned $995 million1 in repurchases and dividends

• Plan to have “normalized” levels of deployable capital by end of 2017

• Continue to pursue organic investments along with disciplined M&A to augment our franchise and meet our return thresholds

- In the absence of attractive organic and M&A opportunities, we will consider returning additional capital

- Expect to continue to grow common stock dividend over time

(1) Year-to-date share repurchase and common stock dividends paid through December 31, 2016.

20Investor Day 2016

Shareholder Value Creation

Attractive business portfolio

Agile and efficient operating structure

Strong cash flow and disciplined capital management

More predictable and diversified earnings stream

21

Appendix

22Investor Day 2016

Previous Structure(1)

New Reportable Segment Structure to Align with Global Operating Model

Specialty

PropertySolutions Health

(runoff operations)

Corporate

& Other

Global

HousingGlobal

Lifestyle

Global

Preneed

Total Corporate

& Other

New Structure(1)

(1) In addition, Assurant Employee Benefits was a separate segment in 2016 and primarily includes activity for the two months prior to its sale.

23Investor Day 2016

Global Housing: Overview

Focused on Housing Products and ServicesFull Year 2016

Net Earned Premiums,Fees and Other Income

$2.3 BillionThree key business lines:



• Lender-placed insurance

Serving market leaders:

• 9 of top 10 mortgage originators

• 9 of top 10 mortgage servicers

• 9 of top 10 property management companies

� Lender-placed insurance

� Multi-family Housing

� Mortgage Solutions

� Manufactured Housing and Other

58%

14%

14%

14%


24Investor Day 2016

Global Housing: 4Q 2016 Results

Net Earned Premiums, Fees & Other Income

($ in millions)

● Net operating income decreased mainly due to higher reportable CAT losses, lender-placed normalization and additional regulatory expenses.

● Net earned premiums, fees and other income decreased primarily due to lender-placed normalization.

– Growth in multi-family housing and mortgage solutions partially offset the decline.

● Combined ratio for risk-based businesses(1) increased to 105.0% compared to 90.2% in 4Q15, as a result of high reportable CAT losses.

– Excluding CAT losses, combined ratio was 88.8%, up 200 basis points compared to 4Q15 due to additional regulatory expenses and new client on-boarding costs.

● Pre-tax margin for fee-based, capital-light businesses(2) was 11.2%, down 50 basis points from 4Q15. Resulted from higher expenses and lower volumes in mortgage solutions, partially offset by increased earnings at multi-family housing.

$361 $347 $322 $329 $320

$75 $77 $78 $82 $84

$82 $76 $79 $88 $86

$84 $78 $82 $80 $81

4Q15 1Q16 2Q16 3Q16 4Q16

(1) Combined ratio for the risk-based businesses is equal to total benefits, losses and expenses, including reportable catastrophe losses, divided by net earned premiums and fees and other income, for lender-placed and manufactured housing and other businesses.

(2) Pre-tax margin for the fee-based, capital-light businesses is equal to income before provision for income taxes divided by total net earned premiums, fees and other income, for multi-family housing and mortgage solutions businesses.

25Investor Day 2016

Global Housing: Creating A More Diversified and Sustainable Business

• Diversification into fee-based and capital-light offerings

• More predictable and sustainable earnings

• Lender-placed represents smaller yet attractive business

• Multi-product distribution

• Deep entanglement with market leaders

• Consumer insights and data analytics

• Enhanced technology platforms

• Greater operational efficiencies while maintaining high client servicing standards

Products & Services

DistributionStrategy

Capabilities

Looking Ahead to 2020Looking Back

• Significant reliance on lender-placed insurance

• Greater earnings variability due to catastrophe exposure

• Single-product distribution

• Operational excellence, compliance, risk management and delivering customized solutions

Note: Information presented at Assurant Investor Day 2016 as of March 2016.

26Investor Day 2016

Global Housing:

Loans Tracked and Placement RateLoans Tracked (in millions)

31.232.9 33.8 34.5 34.7 35.0 34.7 34.5 33.9 33.8 33.5 33.4 33.3 33.4 33.2

0.0

7.0

14.0

21.0

28.0

35.0

4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

(1) Placement rates represent an average of prime and sub-prime loan portfolios and are estimates based on client information and classification. Does not include real estate owned policies.

Average Placement Rates(1) (%)Placement rate declining as lender-placed insurance normalizes

35.9 36.0

2.87 2.89 2.81 2.75 2.77 2.74 2.68 2.64 2.58 2.57 2.46 2.34 2.28 2.24 2.17 2.13 2.00

0.0

1.0

2.0

3.0

4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

27Investor Day 2016

Global Housing: Geographic Spread of Risk

Note: Geographic spread of exposure based on Company’s assessment of total insured value for all of Global Housing.

Southern & HI Coastal

Western

Southern Inland

Northern Inland

Middle US

Northeastern Coastal

Western U.S. StatesAs of 12/31/16 21.0%As of 12/31/15 20.7%

Middle U.S. StatesAs of 12/31/16 14.4%As of 12/31/15 15.0%

Northern Inland ExposureAs of 12/31/16 9.0%As of 12/31/15 9.0%

Southern Inland ExposureAs of 12/31/16 12.6%As of 12/31/15 12.0%

Southern and HI Coastal ExposureAs of 12/31/16 22.3%As of 12/31/15 23.1%

Northeastern Coastal ExposureAs of 12/31/16 20.7%As of 12/31/15 20.2%

28Investor Day 2016

Global Housing:

2016 Catastrophe Reinsurance Program

29Investor Day 2016

Global Housing: Pace of Lender-Placed Normalization In-line with Prior Assumptions

Note: Information presented at Assurant Investor Day in March 2016.(1) Excludes impact from reductions in commissions.(2) Excludes AOCI. Includes goodwill allocated to Global Housing which totaled $304 million at 12/31/15 and $288 million at 12/31/13.

Forward Viewas of March 2016

≈1.8–2.1%

Customary Rate Reviews and Adjustments

≈$173-180K

~33.3MFlat to up slightly

10% of lender-placed gross written premiums

~66-72% of net earned premiums including goodwill

2018 Forward View

Forward View as of March 2014

≈1.8–2.1%

~8-9% decrease from 2013

≈$170-175K

~34.7MFlat to down slightly

10% of lender-placed gross written premiums

~66-72% of net earned premiums including goodwill

Key Metrics

Average Placement Rate

Rate Changes(1)

Average Insured Value

Loans Tracked

Real Estate Owned

Global Housing Equity(2)

30Investor Day 2016

Global Housing:

Multi-Family Housing ProtectionInsuring ~1.5 Million Renters1

Core Offerings:

• Renters insurance - liability, contents

• Tenant bond

• Receivables management

Key Distribution Channels:

• Property managers

− Target large property management with ~ 7M

units

• Affinity partners

− Align with carriers growing faster than market

Competitive Differentiators:

• Size, stability and industry expertise

• Innovative products and services

• Integrated technology and claims administration

Market Share of Property Management Channel2

Note: Information presented at Assurant Investor Day in March 2016.(1) As of 12/31/16(2) Source: National Multi-family Housing Council Apartment Manager Rankings

31Investor Day 2016

Global Housing: Multi-Family a Steady Contributor to Profitability with Double-Digit Growth

2011 2015 2020 Target

Key Drivers:

• Favorable market trends

• Expected market share gains with new clients

• Consumer-focused product enhancements

• Improved policyholder persistency through marketing and technology

• Cross-sell opportunities and expansion of service offerings

$116

$283

Multi-Family Housing Net Earned Premiums and

Fees and Other Income ($ in Millions)

32Investor Day 2016

Global Housing: Mortgage Solutions Provide Strong Platform to Expand Fee-Based Offerings

• Property preservation,

inspections, REO asset

management and data

analytics

• Provide property

services across 50 states

• Fees on a per property

basis drive revenue

• Property preservation,

inspections, REO asset

management and data

analytics

• Provide property

services across 50 states

• Fees on a per property

basis drive revenue

Long-Term• Mortgage appraisals and

industry leading

technology-based quality

tools

• Manage large network of

20k appraisers

• Economics generated on

fees per appraisal and

quality check

• Mortgage appraisals and

industry leading

technology-based quality

tools

• Manage large network of

20k appraisers

• Economics generated on

fees per appraisal and

quality check

Long-Term• Broker price opinions,

valuation reports

providing insights into

local real estate

market trends

• Valuation products

support both servicers

and capital markets

• Fees per report are

charged to servicers or

investors

• Broker price opinions,

valuation reports

providing insights into

local real estate

market trends

• Valuation products

support both servicers

and capital markets

• Fees per report are

charged to servicers or

investors

Origination

Robust technology platform, broad networks, innovative and strong leadership

Servicing Default Management

• Lending provider of real

estate information

services in the home

equity lending market

• Fees generated per

property report of

natural and required

lenders

• Lending provider of real

estate information

services in the home

equity lending market

• Fees generated per

property report of

natural and required

lenders

33Investor Day 2016

Global Housing:

Market Share Gains Expected to Drive Profitable Growth

Key Drivers:

• Favorable industry trends

• Aim to achieve leadership position in fragmented valuation and field services markets

- New customer wins

- Cross-sell and expand share of wallet with existing clients through proven performance

• Differentiated offerings and new products

• Continue to enhance technology and operational excellence

• Select expansion

Mortgage Solutions Fees and Other Income

($ in Millions)

2013-2014Acquired Revenue1

$220

8-10%

$290

2015 2020 Target

(1) Full-year revenue in year of acquisition.

34Investor Day 2016

Global Lifestyle: Overview

Focused on Lifestyle Products & Services

• Operating in three key business lines

- Connected Living, including Mobile and

Extended Service Contracts

- Vehicle Protection

- Credit and other

• Partnering with global market leaders across

distribution channels

- Global OEMs

- Global mobile network/service operators

- Global e-tailers

� Connected Living

� Vehicle Protection

� Credit & Other

Full Year 2016Net Earned Premiums,Fees and Other Income

$3.7 Billion


70%

19%

11%

35Investor Day 2016

Global Lifestyle: Mobile Lifecycle Creates Multiple Profit Pools

DeviceJourney

How we process

the devices

Device is received

Device is inspected

Device is triaged

Device is repaired or refurbished

Device is added to inventory

Device is added to kit

Device utilization optimized1

2

3

4

5

6

7Insurance claims

E-commerce sale

Bulk disposition

8.8 million mobile devices processed in 2016

Sell to mobile carrier

Fee-based Services:

• Trade-in• Repair and logistics• Device disposition

36Investor Day 2016

Global Lifestyle: Vertical Integration is Key Competitive Differentiator

Program Design

Risk Management

Revenue Optimization

Customer Experience and Value-Added Services

Supply Chain and Service Delivery

Device Disposition

• Consumer and market research• Product development

• Underwriting and actuarial services• Regulatory and compliance

• Data analytics to drive sales and channel optimization

• Omni-channel customer support• Device self-diagnostic tools

• Forward and reverse logistics• Repair and refurbishment services• Inventory management

• Multi-channel price optimization• Global disposition platform

37Investor Day 2016

Global Lifestyle: Key Drivers of Risk-Based Offerings

• Continued strong auto

sales

• Expansion through

global vehicle OEMs

• Enhanced value

proposition through

technology suite and

training

• Domestic credit

running off as planned

• Elimination of legacy

systems

• Operating efficiencies

Vehicle Protection Credit and Other

38Investor Day 2016

Global Lifestyle: Transforming our Business to Meet Consumer Needs and Deliver Strong Returns

• Broad service offering focused on Connected Living, including mobile protection

• Expansion into higher margin, fee-based/capital-light products and services

• Channel-agnostic distribution strategy

• Integrated global business lines

• Deepened capabilities around:

- Consumer insights

- Digital and data analytics

- Product innovation

- Dynamic claims management

- Global technology platforms

Products & Services

DistributionStrategy

Capabilities

Looking Ahead to 2020Looking Back

• Reliance on credit insurance and traditional warranty products

• Primarily risk-based offerings

• Reliance on “brick and mortar” retailers

• Domestic and International operating in silos

• Risk management

• Program administration

• Multiple independent systems across products and footprint

39Investor Day 2016

Global Lifestyle: 4Q 2016 Results


($ in millions)

Note: Refer to the quarterly financial supplement for a list of disclosed items included in reported results.

$690 $662 $616 $647 $644

$162 $166 $197 $175 $178

$111 $106 $102 $105

4Q15 1Q16 2Q16 3Q16 4Q16

Global Credit and Other

Global Vehicle Protection

Global Connected Living (Mobile and Service Contracts)

$290

$107

● Net operating income increased primarily due to improved mobile and service contract performance in Connected Living.

● Net earned premiums, fees an other income decreased compared to 4Q15 quarter 2015 due to a change in program structure for a large service contract client, the impact of foreign exchange, and continued declines in legacy North American retail clients and credit insurance.

● Combined ratio for risk-based businesses increased to 95.6% from 94.5% in 4Q15, driven by an increase in vehicle protection losses that were partially offset by an improvement in the credit insurance loss experience.

● Pre-tax margin for fee-based, capital-light business was 3.7%, compared to (1.0%) in 4Q15. The increase was primarily due to improved mobile earnings from lower expenses and a more profitable mix of devices. More favorable service contract loss experience also contributed to the margin increase.

40Investor Day 2016

Global Lifestyle: Objective to Increase Margins in Connected Living Via Expanded Services Offerings and Efficiencies

Key Drivers:

Revenue Growth Drivers

• Expected market share gains through integrated service offerings

• Product innovation

• Margin expansion from business mix shift

• Investments in global capabilities

Operating Efficiencies

• Cost reductions in International and non-growth businesses to maximize profitability

• Globalization of business lines

Global Connected Living Pre-tax Margin

9.5%1

4%

2015 2020 Target

(1) Connected Living pre-tax margin target increased from 8% to 9.5% due to a change in program structure for a large service contract client effective Q416 which lowered annualized revenue by $550M with no impact to profitability.

41Investor Day 2016

Global Preneed: Overview

Focused on selling pre-funded funerals in the US and Canada

Full Year 2016Net Earned Premiums,Fees and Other Income

$171.3 Million

• Pre-arranged Funerals U.S. & Canada

• Final Need

Serving market leaders:

• Partnered with SCI, the leading North American market funeral home provider and other key providers


79%

21%

Domestic International

42Investor Day 2016

Global Preneed: 4Q 2016 Results


($ in millions)● Net operating income increased primarily due to

additional investment income from real estate joint venture partnerships.

● Net earned premiums, fees and other income increased primarily as the result of sales of policies written in prior years

$16 $16 $16 $15 $15

$24 $27 $27 $28 $27

4Q15 1Q16 2Q16 3Q16 4Q16

Net earned premiums Fees and other income

43Investor Day 2016

Full-Year 2017 Outlook

Global Housing

● Global Housing net earned premiums and net operating income, ex. CAT losses, to decrease from 2016 due to the ongoing lender-placed insurance normalization.

● Results to be partially offset by expense savings and profitable growth in Multi-family Housing and Mortgage Solutions. Multi-family Housing and Mortgage Solutions to expand market share.

GlobalLifestyle

● Global Lifestyle to increase net operating income as a result of improved performance in Connected Living driven primarily by mobile, as well as higher contributions from vehicle protection and expense efficiencies.

● Declines in credit insurance and legacy North American retail clients to continue. Revenue expected to decrease, largely due to a change in program structure for a large service contract client.

● Under the new structure, the overall economics of the program are maintained with no impact to profitability, however net earned premiums will be lower by approximately $500M compared to 2016 with a commensurate reduction in expenses.

Corporateand

Capital

● Corporate & Other1 full-year net operating loss to be level with 2016 at approximately $70M as continued expense initiatives are offset by investments to support our multi-year transformation.

● Capital to be deployed through a combination of share repurchases, common stock dividends, and reinvestments and acquisitions in the business, subject to market conditions and other factors.

● Business segment dividends from Global Housing, Global Lifestyle and Global Preneed to approximate segment net operating income, subject to the growth of the businesses, rating agency and regulatory capital requirements.

● Approximately $100M in additional dividends expected from Assurant Health and Assurant Employee Benefits, subject to regulatory approval.

Note: 2017 Outlook from Fourth Quarter 2016 Earnings Release as of December 31, 2016.

(1) The company outlook for Corporate & Other full-year net operating loss constitutes forward-looking information and the company believes that a quantitative reconciliation of such forward-looking information to the most comparable GAAP measure cannot be made available without unreasonable efforts. A reconciliation would require the company to quantify amortization of deferred gains and gains on disposal of businesses, interest expense, net realized gains on investments, and change in derivative investment. The last two components cannot be reliably quantified due to the combination of variability and volatility of such components and may, depending on the size of the components, have a significant impact on the reconciliation. The company is able to reasonably quantify the first two components for the forecast period, assuming no additional debt is acquired in the forecast period. Amortization of deferred gains and gains on disposal of businesses is estimated to be approximately $64.5 after-tax million while interest expense is estimated to be approximately $32.1 after-tax million.

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

GlobalPreneed

Assurant● Assurant net operating income, ex. reportable CAT losses, to be roughly level with 2016 results, ex. CAT losses, as

profitable growth primarily in fee-based, capital-light offerings including Connected Living, Multi-family Housing and Mortgage Solutions, as well as vehicle protection is offset by declines in lender-placed insurance and other legacy businesses. Expense savings from enterprise transformation projects are expected to be reinvested in the business.

44Investor Day 2016

Assurant’s Ratings

A.M. Best

● FSRs for most of our domestic insurance companies and Assurant Life of Canada, debt ratings

● FSR: A or A- (excellent) or B+ (good)

● Debt: bbb+ (adequate)

● Stable outlook on all ratings

S&P ● FSRs for five of our largest domestic insurance companies, debt ratings

● FSR: A (strong) Debt: BBB+ (adequate)


Moody’s

● FSRs for four of our largest domestic insurance companies, debt ratings

● FSR: A2, A3 (offer good financial security)

● Debt: Baa2: Obligations rated Baa are subject to moderate credit risk


Information as of December 31, 2016

45Investor Day 2016

2016 Executive Short-Term Incentive Plan(1)

• Profitability – 60%

– Net operating income, excluding CATs

– Net operating income per share, (“NOI EPS”)

• Revenue Growth – 40%

– Revenue growth in core and targeted areas

2016 Long-Term Equity Incentive Plan

• Profitability and Capital Management – 50%

– Absolute NOI EPS measure supports multi-year transformation, including profitable growth, operating efficiency and capital management

• Total stockholder return – 50%

– Percent change in Company stock price plus dividend yield percentage relative to the S&P 500

Note: Refer to 2016 Proxy Statement as filed with the SEC for additional information and rationale for changes to 2016 compensation plans. (1) Refers to enterprise program. For business segments, program consists of 20% business segment revenue growth in core/accelerated areas, 30%

business segment NOI growth and 50% enterprise metrics.

Management Interests Aligned with Shareholders

ConsolidatedCore/

Accelerated Revenue, 40%

Consolidated NOI30%

Consolidated NOI EPS

30%

• 2016 changes to short-term and long-term compensation programs drive greater collaboration across the enterprise and reinforce commitment to pay-for-performance

Relative TSR50%

Absolute NOI-EPS

50%

46Investor Day 2016

Investment Philosophy

• Income Oriented Investment Approach

• The primary objective is to achieve long-term, stable, risk-adjusted investment income

• Typically results in low portfolio turnover, which in the current low rate environment helps preserve book yield / income

• Risk Management Focus

• Both at the security and portfolio levels

• Internal credit team

• Average credit quality across the portfolio of A2

All portfolio information as of December 31, 2016.

Dual Focus

47Investor Day 2016

Diversified Investment Portfolio

Summary Statistics – 6/30/14

Unrealized Gain on Fixed Maturities (billions)

$1.2

Market Value (billions) $16.1

Average Duration (years)

6.5

Investment Yield 4.4%

Average Quality A2

Summary Statistics –12/31/16

Market Value (billions) $12.5

Investment Yield Year-to-Date 12/31/16(2) 4.02%

Unrealized Gain on Fixed Maturities (millions)

$701

Average Duration(3)

(years)6.92

Average Quality A2

Investment Portfolio Breakdown(1)

12/31/16

Fixed Maturity Securities by Credit Quality

12/31/16

Note: Investment Portfolio Information includes Assurant Health Runoff Operations and excludes the divested Assurant Employee Benefits business, which was sold on March 1, 2016.(1) Expressed as a percentage of total investments & cash and cash equivalents of $12.5 billion as of 12/31/16.(2) Investment yield excludes investment (loss) income from real estate joint venture partnerships. (3) Average duration excludes policy loans, securities lending, and other investments and includes cash and cash equivalents held at Corporate.

RMBSCMBSABS9%

Municipals4%

Foreign Govt5%

U.S. Govt/Agency1%

Cash andCash Equivalents

8%

Short-term2%

CommercialMortgages

5%

Other5%

PreferredStocks

3%

Aaa / Aa / A63%

Baa30%

Ba 5%B and lower 2%

Corporate58%

48Investor Day 2016

1. Assurant uses net operating income per diluted share, excluding reportable catastrophe losses, as another important measure of the Company's stockholder value.The Company believes this metric provides investors a valuable measure of stockholder value because it excludes the effect of reportable catastrophe losses whichcan be volatile. The comparable GAAP measure would be net income per diluted share, defined as net income divided by weighted average diluted sharesoutstanding.

Exhibit 1: Non-GAAP Financial Measures

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

Note: Additional financial information, including a schedule of disclosed items that affected Assurant’s results by business appears on theCompany’s Financial Supplement, and is located in the Investor Relations section of www.assurant.com.

2016 2015

4Q 4Q 2016 2015

Net operating income, excl catastrophe losses, per diluted share 1.22$ 0.85$ 6.12$ 6.06$

Adjustments, net of tax:

Assurant Health runoff operations (0.10) (0.24) (0.67) (5.33)

Assurant Employee Benefits (0.03) 0.23 0.14 0.69

Net realized (losses) gains on investments (0.36) 0.09 1.70 0.30

Reportable catastrophe losses (0.76) (0.14) (1.65) (0.28)

Amortization of deferred gains and gains on disposal of businesses 0.95 0.03 4.14 0.12

Loss on extinguishment of debt (0.26) - (0.24) -

Other Adjustments:

(Loss) gain related to benefit plan activity (0.07) - 0.23 -

Change in tax liabilities - - - 0.23

Gain on sale of subsidiary - 0.15 - 0.16

Payment received related to previous sale of subsidiary - - - 0.14

Amount related to the sale of AEB - - (0.28) -

Post-close cont. liab. on prev. disposition (0.06) - (0.24) -

Intangible asset impairment - - (0.17) -

Change in derivative investment 0.01 - 0.05 (0.04)

Net income per diluted share 0.54$ 0.97$ 9.13$ 2.05$

Twelve Months Ended

December 31,

49Investor Day 2016

2. Assurant uses Operating ROE, excluding AOCI and reportable catastrophe losses, as another important measure of the Company’s operating performance. TheCompany believes Operating ROE excluding AOCI and reportable catastrophe losses provides investors a valuable measure of the performance of the Company’songoing business, because it excludes the effect of reportable catastrophe losses which can be volatile. The comparable GAAP measure would be GAAP ROE.

Exhibit 1 Continued: Non-GAAP Financial Measures


4Q 4Q 2016 2015

Annual operating return on average equity, excluding AOCI and

reportable catastrophe losses 7.2% 6.7% 10.5% 12.0%

Assurant Health runoff operations (0.7)% (1.8)% (1.1)% (10.6)%

Assurant Employee Benefits (0.2)% 1.8% 0.2% 1.4%

Net realized (losses) gains on investments (2.1)% 0.7% 2.9% 0.6%

Amortization of deferred gains and gains on disposal of

businesses 5.6% 0.2% 7.1% 0.2%

Loss on extinguishment of debt (1.5)% 0.0% (0.4)% 0.0%

Reportable catastrophe losses (4.5)% (1.1)% (2.8)% (0.5)%

Other adjustments:

(Loss) gain related to benefit plan activity (0.4)% - 0.3% -

Change in tax liabilities - - - 0.5%

Gain (loss) on sale of subsidiary - 1.2% - 0.3%

Payment received related to previous sale of subsidiary - - - 0.3%

Amount related to the sale of AEB - - (0.5)% -

Post-close cont. liab. on prev. disposition (0.4)% - (0.4)% -

Intangible asset impairment - - (0.2)% -

Change in derivative investment 0.1% - 0.1% (0.1)%

Change due to effect of including AOCI & other (0.2)% (2.0)% (2.6)% (1.2)%

Annual GAAP return on average equity 2.9% 5.7% 13.1% 2.9%

2015 Twelve Months Ended December 31, 2016

50Investor Day 2016


3. Assurant uses net operating income as an important measure of the company’s operating performance. Net operating income equals net income -- excludingAssurant Health runoff operations, Assurant Employee Benefits, net realized gains (losses) on investments, amortization of deferred gains and gains on disposalof businesses and other highly variable items. The company believes net operating income provides a valuable measure of the performance of the company’songoing business because it excludes the effect of Assurant Health runoff operations and the divested Assurant Employee Benefits business, which the companysold on March 1, 2016. The calculation also excludes net realized gains (losses) on investments, amortization of deferred gains and gains on disposal ofbusinesses and those events that are highly variable and do not represent the ongoing operations of the company.

(UNAUDITED) 4Q 4Q 12 Months 12 Months

(dollars in millions) 2016 2015 2016 2015

Net operating income $ 27.0 $ 47.7 $ 276.9 $ 398.6

Adjustments (pre-tax):

Assurant Health runoff operations (5.2) (21.8) (47.3) (525.9)

Assurant Employee Benefits (3.1) 24.0 13.7 73.8

Net realized (losses) gains on investments (31.9) 9.7 162.2 31.8


businesses 85.3 3.2 394.5 13.0

Loss on extinguishment of debt (23.0) - (23.0) -

Other adjustments (10.4) 15.3 (40.1) 44.5

(Provision) benefit for income taxes (7.4) (12.4) (171.5) 105.8

GAAP net income 31.3$ 65.7$ 565.4$ 141.6$


51Investor Day 2016

4. Assurant uses Corporate & Other net operating loss as an important measure of the corporate segment’s operating performance. Corporate & Other net operatingloss equals segment net income (loss), excluding amortization of deferred gains and gains on disposal of businesses, net realized gains (losses) on investments,interest expense and other highly variable items. The company believes Corporate & Other net operating loss provides a valuable measure of the performance ofthe company’s corporate segment because it excludes the effect of amortization of deferred gains and gains on disposal of businesses, net realized gains (losses) oninvestments, interest expense and those events that are highly variable and do not represent the ongoing operations of the company’s Corporate & Other segment.The comparable GAAP measure is Total Corporate & Other segment net income.



4Q 4Q 12 Months 12 Months

2016 2015 2016 2015

GAAP Total Corporate & Other segment net (loss) income (23.0)$ (37.1)$ 171.6$ (410.6)$

Excluding: Health runoff operations net loss (6.7) (15.8) (41.0) (367.9)

GAAP Corporate & Other segment net (loss) income (16.3) (21.3) 212.6 (42.7)

Adjustments, pre-tax:


businesses (85.3) (3.2) (394.5) (13.0)

Interest expense 13.9 13.8 57.6 55.1

Net realized losses (gains) on investments 31.9 (9.7) (162.2) (31.8)

Loss on extinguishment of debt 23.0 - 23.0 -

Other adjustments 10.4 (15.3) 40.1 (44.5)

Provision for income taxes 2.1 5.0 152.4 6.5

Corporate & other net operating loss (20.3)$ (30.7)$ (71.0)$ (70.4)$

5. The company outlook for Corporate & Other full-year net operating loss constitutes forward-looking information and the company believes that it cannot reconcilesuch forward-looking information to the most comparable GAAP measure without unreasonable efforts. A reconciliation would require the company to quantifyamortization of deferred gains and gains on disposal of businesses, interest expense, net realized gains on investments, and change in derivative investment. Thelast two components cannot be reliably quantified due to the combination of variability and volatility of such components and may, depending on the size of thecomponents, have a significant impact on the reconciliation. The company is able to reasonably quantify the first two components for the forecast period,assuming the company does not incur additional debt in the forecast period. Amortization of deferred gains and gains on disposal of businesses is approximately$64.5 million after-tax while interest expense is approximately $32.1 million after-tax.

52Investor Day 2016

Exhibit 2: Safe Harbor StatementSome of the statements included in this news release and its exhibits, particularly those anticipating future financial performance,business prospects, growth and operating strategies and similar matters, are forward-looking statements within the meaning of the U.S.Private Securities Litigation Reform Act of 1995. You can identify these statements by the use of words such as “outlook,” “will,”“may,” “anticipates,” “expects,” “estimates,” “projects,” “intends,” “plans,” “believes,” “targets,” “forecasts,” “potential,”“approximately,” or the negative version of those words and other words and terms with a similar meaning. Any forward-lookingstatements contained in this news release or its exhibits are based upon our historical performance and on current plans, estimates andexpectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other personthat the future plans, estimates or expectations contemplated by us will be achieved. Our actual results might differ materially fromthose projected in the forward-looking statements. The company undertakes no obligation to update or review any forward-lookingstatements in this news release or the exhibits, whether as a result of new information, future events or other developments. Thefollowing risk factors could cause our actual results to differ materially from those currently estimated by management, including thoseprojected in the company outlook:

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

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

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For more information please visit:www.assurant.com

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