ASSURANT, INC. - FORM 8-K - EX-99.2 - FINANCIAL SUPPLEMENT

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8-K - FORM 8-K - ASSURANT, INC.	d8k.htm
EX-99.1 - PRESS RELEASE - ASSURANT, INC.	dex991.htm

Exhibit 99.2

LOGO

Assurant, Inc. (AIZ)

Financial Supplement as of June 30, 2010

ASSURANT, INC.

FINANCIAL SUPPLEMENT

(UNAUDITED)

AS OF JUNE 30, 2010

INDEX TO SUPPLEMENT


		Page:

SAFE HARBOR STATEMENT		1

REGULATION G – NON GAAP FINANCIAL MEASURES		1

SUMMARY FINANCIAL HIGHLIGHTS		2

SEGMENTED CONDENSED BALANCE SHEETS		4

RECONCILIATION OF NET OPERATING INCOME TO NET INCOME		5

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS AND SELECTED DATA		6

CONDENSED SEGMENT STATEMENTS OF OPERATIONS AND SELECTED DATA		8

INVESTMENTS		16

INVESTMENT RESULTS BY ASSET CATEGORY & ANNUALIZED YIELDS		18

SUMMARY OF NET OPERATING INCOME DISCLOSED ITEMS		19

RATINGS SUMMARY		20

EXHIBIT I - COMMERCIAL MORTGAGE LOANS SUMMARY		21

EXHIBIT II - TOP 10 FOREIGN GOVERNMENT EXPOSURES		22


CONTACT INFORMATION

Corporate Headquarters Address:	Investor Inquiries:

One Chase Manhattan Plaza	Melissa Kivett	Suzanne Shepherd
New York, New York 10005	Senior Vice President	Manager
212-859-7000	Investor Relations	Investor Relations
	212-859-7029	212-859-7062
Website Address:	melissa.kivett@assurant.com	suzanne.shepherd@assurant.com
www.assurant.com

About Assurant:

Assurant is a premier provider of specialized insurance products and related services in North America and select worldwide markets. The four key businesses – Assurant Solutions; Assurant Specialty Property; Assurant Health; and Assurant Employee Benefits – have partnered with clients who are leaders in their industries and have built leadership positions in a number of specialty insurance market segments in the U.S. and selected international markets. The Assurant business units provide debt protection administration; credit-related insurance; warranties and service contracts; pre-funded funeral insurance; creditor-placed homeowners insurance; manufactured housing homeowners insurance; individual health and small employer group health insurance; group dental insurance; group disability insurance; and group life insurance.

Assurant, a Fortune 500 company and a member of the S&P 500, is traded on the New York Stock Exchange under the symbol AIZ. Assurant has more than $26 billion in assets and $8 billion in annual revenue. Assurant has approximately 14,500 employees worldwide and is headquartered in New York’s financial district. www.assurant.com.

Safe Harbor Statement:

Some of the statements included in this financial supplement 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 fact that they may use words such as “will,” “anticipate,” “expect,” “estimate,” “project,” “intend,” “plan,” “believe,” “target,” “forecast,” or the negative versions of those words and terms with a similar meaning. Our actual results may differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update any forward-looking statements in this financial supplement or its exhibits as a result of new information or future events or developments.

The following risk factors could cause our actual results to differ materially from those currently estimated by management: (i) the effects of the Patient Protection and Affordable Care Act and the rules and regulations to be promulgated thereunder on our health and employee benefits businesses and consequent changes that may occur in the market for individual and small group health insurance, disability and dental insurance; (ii) factors, including the effects of health care reform and the relationship between the Company’s market capitalization and its book value, that could result in a material impairment of goodwill on the company’s balance sheet; (iii) loss of significant client relationships, distribution sources and contractual arrangements; (iv) losses due to natural and man-made catastrophes; (v) failure to attract and retain sales representatives; (vi) inability of reinsurers to meet their obligations; (vii) unfavorable outcomes in litigation and/or regulatory investigations that could negatively affect our business and reputation; (viii) current or new laws and regulations that could increase our costs and/or decrease our revenues; (ix) general global economic, financial market and political conditions (including difficult conditions in financial, capital and credit markets, the global economic slowdown, fluctuations in interest rates, mortgage rates, monetary policies, unemployment and inflationary pressure); (x) inadequacy of reserves established for future claims losses; (xi) failure to predict or manage benefits, claims and other costs; (xii) increases or decreases in tax valuation allowances; (xiii) fluctuations in exchange rates and other risks related to our international operations; (xiv) unavailability, inadequacy and unaffordable pricing of reinsurance coverage; (xv) diminished value of invested assets in our investment portfolio (due to, among other things, volatility in financial markets, the global economic slowdown, credit and liquidity risk, other than temporary impairments and inability to target an appropriate overall risk level); (xvi) insolvency of third parties to whom we have sold or may sell businesses through reinsurance or modified co-insurance; (xvii) credit risk of some of our agents in Assurant Specialty Property and Assurant Solutions; (xviii) a decline in our credit or financial strength ratings (including the risk of ratings downgrades in the insurance industry); (xix) failure to effectively maintain and modernize our information systems; (xx) failure to protect client information and privacy; (xxi) failure to find and integrate suitable acquisitions and new insurance ventures; (xxii) inability of our subsidiaries to pay sufficient dividends; (xxiii) failure to provide for succession of senior management and key executives; and (xxiv) significant competitive pressures in our businesses and cyclicality of the insurance industry.

For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to, our 2009 Annual Report on Form 10-K, first quarter 2010 Form 10-Q and our upcoming second quarter 2010 Form 10-Q, as filed with the SEC.

Regulation G – 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 financial supplement. 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.

(1) Assurant uses net operating income as an important measure of the Company’s operating performance. Net operating income equals net income, excluding net realized gains (losses) on investments and unusual and/or infrequent items. The Company believes net operating income provides investors a valuable measure of the performance of the Company’s ongoing business, because it excludes both the effect of net realized gains (losses) on investments that tend to be highly variable from period to period, and those events that are unusual and/or unlikely to recur. Please refer to page 5 for a reconciliation of net operating income to net income.

(2) Assurant uses annualized operating ROE as an important measure of the Company’s operating performance. Annualized operating ROE equals net operating income for the periods presented divided by average stockholders’ equity for the year to date period, excluding accumulated other comprehensive income (“AOCI”), and then the return is annualized, if necessary. The Company believes annualized operating ROE provides investors a valuable measure of the performance of the Company’s ongoing business, because it excludes the effect of net realized gains (losses) on investments that tend to be highly variable and those events that are unusual and/or unlikely to recur. The comparable GAAP measure would be annualized GAAP return on equity, defined as the annualized return of net income divided by average stockholders’ equity for the period. Consolidated GAAP ROE for the three months ended June 30, 2010 and 2009 was 13.2% and 19.2%, respectively, and for the six months ended June 30, 2010 and 2009 was 13.0% and 13.6%, respectively. Segment ROEs are measured consistently with GAAP. Please refer to page 6 for the reconciliation of annualized operating ROE to annualized GAAP return on average equity.

(3) Assurant uses book value per diluted share excluding AOCI as an important measure of the Company’s stockholder value. Book value per diluted share excluding AOCI equals total stockholders’ equity excluding AOCI divided by diluted shares outstanding. The company believes book value per diluted share excluding AOCI provides investors a valuable measure of stockholder value because it excludes the effect of unrealized gains (losses) on investments which tend to be highly variable from period to period and other comprehensive income items. The comparable GAAP measure for this included measure would be book value per diluted share defined as total stockholders’ equity divided by diluted shares outstanding. Book value per diluted share was $45.95 as of June 30, 2010, as shown in the reconciliation below.


	As of June 30, 2010
Book value per diluted share (excluding AOCI)	$	43.42
Change due to effect of including AOCI		2.53

Book value per diluted share	$	45.95

Page 1

Assurant, Inc.

Summary Financial Highlights

(Unaudited)


	2010		2009			Six Months
*($ in thousands, except number of shares and per share amounts)*	2Q		2Q			2010		2009
Net operating income ⁽¹⁾	$	152,226	$	99,297		$	306,542	$	237,076
Net realized gains (losses) on investments		12,449		(3,992	)		15,356		(40,190	)
Change in tax valuation allowance		—		13,021			—		(7,979	)
Legal settlement and related expenses		—		84,996			—		84,996

Net income	$	164,675	$	193,322		$	321,898	$	273,903

Total revenues	$	2,140,294	$	2,273,609		$	4,308,150	$	4,361,486
PER SHARE AND SHARE DATA:
Basic earnings per common share
Net operating income	$	1.36	$	0.84		$	2.68	$	2.01
Net income	$	1.47	$	1.63		$	2.82	$	2.32
Weighted average common shares outstanding - basic		111,893,858		118,482,958			114,341,824		118,188,879
Diluted earnings per common share
Net operating income	$	1.35	$	0.84		$	2.66	$	2.00
Net income	$	1.46	$	1.63		$	2.80	$	2.31
Weighted average common shares outstanding - diluted		112,715,117		118,728,304			115,091,232		118,435,031

(1)	See Footnote (1) in Regulation G - Non GAAP Financial Measures on page 1.

Page 2

Assurant, Inc.

Summary Financial Highlights (continued)

(Unaudited)


	2010						2009
($ in thousands, except number of shares and per share amounts)	2Q			1Q			4Q			3Q			2Q			1Q
Total assets	$	26,115,330		$	26,238,814		$	25,841,796		$	25,665,578		$	24,822,474		$	23,820,644
Total stockholders’ equity	$	5,038,168		$	4,973,585		$	4,853,249		$	4,903,449		$	4,364,577		$	3,670,322
Total stockholders’ equity (excluding AOCI)	$	4,760,017		$	4,819,547		$	4,787,324		$	4,781,088		$	4,676,177		$	4,452,650
Basic book value per share	$	46.35		$	43.36		$	41.27		$	41.71		$	36.83		$	30.99
Basic book value per share (excluding AOCI)	$	43.79		$	42.02		$	40.71		$	40.66		$	39.46		$	37.60
Shares outstanding for basic book value per share calculation		108,703,559			114,705,703			117,591,250			117,572,997			118,494,717			118,432,367
Diluted book value per share	$	45.95		$	43.16		$	41.03		$	41.61		$	36.76		$	30.98
Diluted book value per share (excluding AOCI) ⁽¹⁾	$	43.42		$	41.82		$	40.47		$	40.57		$	39.38		$	37.58
Shares outstanding for diluted book value per share calculation		109,635,918			115,243,238			118,293,293			117,854,377			118,736,239			118,477,818
Debt to total capital ratio (excluding AOCI)		17.1	%		16.9	%		17.0	%		17.0	%		17.3	%		18.0	%

(1)	See Footnote (3) in Regulation G - Non GAAP Financial Measures on page 1.

Page 3

Assurant, Inc.

Segmented Condensed Balance Sheets

(Unaudited)


	At June 30, 2010
	Solutions		Specialty Property		Health		Employee Benefits		Corporate & Other(1)		Consolidated
	*($ in thousands)*
Assets
Investments and cash and cash equivalents	$	7,232,617	$	2,481,918	$	959,359	$	2,286,627	$	1,731,948	$	14,692,469
Reinsurance recoverables		625,540		434,762		7,494		14,519		3,579,031		4,661,346
Deferred acquisition costs		2,184,191		207,727		5,731		25,257		—		2,422,906
Goodwill		—		—		—		—		924,426		924,426
Assets held in separate accounts		212,445		—		—		—		1,559,690		1,772,135
Other assets		546,312		395,753		118,446		177,361		404,176		1,642,048

Total assets	$	10,801,105	$	3,520,160	$	1,091,030	$	2,503,764	$	8,199,271	$	26,115,330

Liabilities
Policyholder benefits and claims payable	$	4,811,127	$	388,150	$	455,740	$	1,707,318	$	3,785,975	$	11,148,310
Unearned premiums		3,467,543		1,315,009		126,927		14,056		40,446		4,963,981
Debt		—		—		—		—		972,110		972,110
Mandatorily redeemable preferred stock		—		—		—		—		8,160		8,160
Liabilities related to separate accounts		212,445		—		—		—		1,559,690		1,772,135
Deferred gain on disposal of businesses		—		—		—		—		152,794		152,794
Accounts payable and other liabilities		755,601		529,922		124,511		208,692		440,946		2,059,672

Total liabilities		9,246,716		2,233,081		707,178		1,930,066		6,960,121		21,077,162
Stockholders’ equity
Equity, excluding accumulated other comprehensive income		1,554,389		1,287,079		383,852		573,698		960,999		4,760,017
Accumulated other comprehensive income		—		—		—		—		278,151		278,151

Total stockholders’ equity		1,554,389		1,287,079		383,852		573,698		1,239,150		5,038,168

Total liabilities and stockholders’ equity	$	10,801,105	$	3,520,160	$	1,091,030	$	2,503,764	$	8,199,271	$	26,115,330


	At December 31, 2009
	Solutions		Specialty Property		Health		Employee Benefits		Corporate & Other(1)		Consolidated
	*($ in thousands)*
Investments and cash and cash equivalents	$	7,393,989	$	2,287,688	$	954,132	$	2,343,922	$	1,496,653	$	14,476,384
Reinsurance recoverables		674,806		329,512		7,251		21,589		3,179,705		4,212,863
Deferred acquisition costs		2,257,568		214,300		8,338		24,448		—		2,504,654
Goodwill		—		—		—		—		926,398		926,398
Assets held in separate accounts		219,166		—		—		—		1,753,166		1,972,332
Other assets		546,271		355,240		108,846		131,708		607,100		1,749,165

Total assets	$	11,091,800	$	3,186,740	$	1,078,567	$	2,521,667	$	7,963,022	$	25,841,796

Liabilities
Policyholder benefits and claims payable	$	4,772,514	$	345,109	$	491,899	$	1,718,623	$	3,387,815	$	10,715,960
Unearned premiums		3,655,942		1,315,881		124,515		15,721		41,505		5,153,564
Debt		—		—		—		—		972,058		972,058
Mandatorily redeemable preferred stock		—		—		—		—		8,160		8,160
Liabilities related to separate accounts		219,166		—		—		—		1,753,166		1,972,332
Deferred gain on disposal of businesses		—		—		—		—		164,899		164,899
Accounts payable and other liabilities		790,361		340,952		152,947		250,282		467,032		2,001,574

Total liabilities		9,437,983		2,001,942		769,361		1,984,626		6,794,635		20,988,547
Stockholders’ equity
Equity, excluding accumulated other comprehensive income		1,653,817		1,184,798		309,206		537,041		1,102,462		4,787,324
Accumulated other comprehensive income		—		—		—		—		65,925		65,925

Total stockholders’ equity		1,653,817		1,184,798		309,206		537,041		1,168,387		4,853,249

Total liabilities and stockholders’ equity	$	11,091,800	$	3,186,740	$	1,078,567	$	2,521,667	$	7,963,022	$	25,841,796

(1)	Corporate & Other includes all accumulated other comprehensive income/loss and goodwill as well as reinsurance recoverables and separate accounts related to the sale of businesses by reinsurance.

Page 4

Assurant, Inc.

Reconciliation of Net Operating Income to Net Income

(Unaudited)


	2010						2009												Six Months
*($ in thousands, net of tax)*	2Q			1Q			4Q			3Q			2Q			1Q			2010			2009
Assurant Solutions	$	30,323		$	28,866		$	30,203		$	31,644		$	27,894		$	30,311		$	59,189		$	58,205
Assurant Specialty Property		103,717			118,478			106,944			103,157			91,228			104,668			222,195			195,896
Assurant Health		25,300			8,369			(29,715	)		(4,847	)		(10,330	)		14,672			33,669			4,342
Assurant Employee Benefits		12,393			16,467			11,556			11,450			12,128			7,022			28,860			19,150
Corporate and other		(13,568	)		(11,962	)		(8,938	)		(9,743	)		(16,157	)		(13,442	)		(25,530	)		(29,599	)
Amortization of deferred gains on disposal of businesses		3,916			3,953			1,370			4,421			4,388			4,421			7,869			8,809
Interest expense		(9,855	)		(9,855	)		(9,854	)		(9,854	)		(9,854	)		(9,873	)		(19,710	)		(19,727	)

Net operating income		152,226			154,316			101,566			126,228			99,297			137,779			306,542			237,076
Adjustments:
Net realized gains (losses) on investments		12,449			2,907			(7,561	)		12,913			(3,992	)		(36,198	)		15,356			(40,190	)
Change in tax valuation allowance		—			—			936			7,043			13,021			(21,000	)		—			(7,979	)
Legal settlement and related expenses		—			—			—			(1,454	)		84,996			—			—			84,996
Goodwill impairment		—			—			(83,000	)		—			—			—			—			—

Net income	$	164,675		$	157,223		$	11,941		$	144,730		$	193,322		$	80,581		$	321,898		$	273,903

Page 5

Assurant, Inc.

Consolidated Condensed Statements of Operations

(Unaudited)


	2010						2009												Six Months
($ in thousands, except per share data)	2Q			1Q			4Q			3Q			2Q			1Q			2010			2009
Revenues:
Net earned premiums and other considerations	$	1,849,895		$	1,906,643		$	1,925,492		$	1,874,398		$	1,875,866		$	1,874,579		$	3,756,538		$	3,750,445
Net investment income		175,196			174,014			172,503			172,924			174,932			178,479			349,210			353,411
Net realized gains (losses) on investments		19,152			4,473			(11,632	)		19,866			(6,142	)		(55,689	)		23,625			(61,831	)
Amortization of deferred gains on disposal of businesses		6,024			6,081			2,107			6,802			6,750			6,802			12,105			13,552
Fees and other income		90,027			76,645			93,672			82,883			222,203			83,706			166,672			305,909

		2,140,294			2,167,856			2,182,142			2,156,873			2,273,609			2,087,877			4,308,150			4,361,486

Benefits, losses and expenses:
Policyholder benefits		905,316			927,996			977,093			941,145			989,402			960,342			1,833,312			1,949,744
Selling, underwriting, general and administrative expenses		966,361			976,333			1,045,734			991,502			987,529			954,479			1,942,694			1,942,008
Goodwill impairment		—			—			83,000			—			—			—			—			—
Interest expense		15,161			15,161			15,160			15,160			15,160			15,189			30,322			30,349

		1,886,838			1,919,490			2,120,987			1,947,807			1,992,091			1,930,010			3,806,328			3,922,101

Income before provision for income taxes		253,456			248,366			61,155			209,066			281,518			157,867			501,822			439,385
Provision for income taxes		88,781			91,143			49,214			64,336			88,196			77,286			179,924			165,482

Net income	$	164,675		$	157,223		$	11,941		$	144,730		$	193,322		$	80,581		$	321,898		$	273,903

Diluted per share data:
Net operating income per diluted share	$	1.35		$	1.32		$	0.86		$	1.07		$	0.84		$	1.17		$	2.66		$	2.00
Book value per diluted share (excluding AOCI)	$	43.42		$	41.82		$	40.47		$	40.57		$	39.38		$	37.58		$	43.42		$	39.38
Computation of return on average equity measures:
Numerator:
Net operating income	$	152,226		$	154,316		$	101,566		$	126,228		$	99,297		$	137,779		$	306,542		$	237,076
Net income		164,675			157,223			11,941			144,730			193,322			80,581			321,898			273,903
Denominator:
Average equity, excluding AOCI	$	4,789,782		$	4,803,435			4,784,207			4,728,633			4,564,413			4,416,551			4,773,671			4,528,314
Add: Average AOCI		216,095			109,982			94,143			(94,620	)		(546,964	)		(726,637	)		172,038			(491,273	)

Average equity, including AOCI	$	5,005,877		$	4,913,417		$	4,878,350		$	4,634,013		$	4,017,449		$	3,689,914		$	4,945,709		$	4,037,041
Annualized operating return on average equity (excluding AOCI)⁽¹⁾		12.7	%		12.9	%		8.5	%		10.7	%		8.7	%		12.5	%		12.8	%		10.5	%
Annualized GAAP return on average equity		13.2	%		12.8	%		1.0	%		12.5	%		19.2	%		8.7	%		13.0	%		13.6	%
Annualized operating return on average equity (excluding AOCI) ⁽¹⁾		12.7	%		12.9	%		8.5	%		10.7	%		8.7	%		12.5	%		12.8	%		10.5	%
Net realized gains (losses) on investments		1.1	%		0.2	%		-0.6	%		1.1	%		-0.3	%		-3.3	%		0.7	%		-1.8	%
Change in tax valuation allowance		—			—			0.1	%		0.6	%		1.1	%		-1.9	%		—			-0.4	%
Legal settlement and related expenses		—			—			—			-0.1	%		7.4	%		—			—			3.8	%
Goodwill impairment		—			—			-6.8	%		—			—			—			—			—
Change due to effect of including AOCI		-0.6	%		-0.3	%		-0.2	%		0.2	%		2.3	%		1.4	%		-0.5	%		1.5	%

Annualized GAAP return on average equity		13.2	%		12.8	%		1.0	%		12.5	%		19.2	%		8.7	%		13.0	%		13.6	%

(1)	See Footnote (2) Regulation G - Non GAAP Financial Measures on page 1.

Page 6

Assurant, Inc.

Consolidated Condensed Statements of Operations (continued)

(Unaudited)


	2010						2009												Six Months
($ in thousands, except per share data and closing stock price)	2Q			1Q			4Q			3Q			2Q			1Q			2010			2009
Share repurchases:
Shares repurchased		6,066,216			3,426,469			—			1,122,050			—			—			9,492,685			—
Average repurchase price per share	$	35.46		$	31.86		$	—		$	28.47		$	—		$	—		$	34.16		$	—
Total cost of share repurchase	$	215,110		$	109,184		$	—		$	31,948		$	—		$	—		$	324,294		$	—
AIZ Closing stock price (NYSE)	$	34.70		$	34.38		$	29.48		$	32.06		$	24.09		$	21.78		$	34.70		$	24.09
Investment yield ⁽²⁾		5.02	%		4.98	%		4.96	%		5.08	%		5.23	%		5.32	%		5.00	%		5.26	%

(2)	Investment yield excludes investment (loss) income from real estate joint venture partnerships.

Page 7

Assurant Solutions

Condensed Statements of Operations

(Unaudited)


	2010				2009								Six Months
*($ in thousands)*	2Q		1Q		4Q		3Q		2Q		1Q		2010		2009
Revenues:
Net earned premiums and other considerations	$	629,682	$	645,364	$	690,150	$	669,344	$	666,935	$	644,612	$	1,275,046	$	1,311,547
Net investment income		98,956		98,453		98,447		97,681		97,106		97,995		197,409		195,101
Fees and other income		54,580		45,712		62,466		50,093		51,960		52,031		100,292		103,991

		783,218		789,529		851,063		817,118		816,001		794,638		1,572,747		1,610,639

Benefits, losses and expenses:
Policyholder benefits		228,776		227,631		246,871		248,933		261,325		272,022		456,407		533,347
Selling, underwriting, general and administrative expenses		503,172		511,090		550,139		520,217		509,388		475,604		1,014,262		984,992

		731,948		738,721		797,010		769,150		770,713		747,626		1,470,669		1,518,339

Income before provision for income taxes		51,270		50,808		54,053		47,968		45,288		47,012		102,078		92,300
Provision for income taxes		20,947		21,942		23,850		16,324		17,394		16,701		42,889		34,095

Net operating income	$	30,323	$	28,866	$	30,203	$	31,644	$	27,894	$	30,311	$	59,189	$	58,205

Net earned premiums and other considerations:
Domestic:
Credit	$	47,343	$	50,928	$	53,050	$	59,562	$	62,740	$	65,941	$	98,271	$	128,681
Service contracts		336,043		339,096		362,404		348,258		354,783		346,508		675,139		701,291
Other		12,723		12,213		23,835		24,471		22,054		14,579		24,936		36,633

Total Domestic		396,109		402,237		439,289		432,291		439,577		427,028		798,346		866,605

International:
Credit		83,360		86,739		85,711		80,743		79,835		74,173		170,099		154,008
Service contracts		109,275		117,189		122,053		108,458		97,280		87,903		226,464		185,183
Other		5,261		4,106		3,939		4,025		4,107		3,660		9,367		7,767

Total International		197,896		208,034		211,703		193,226		181,222		165,736		405,930		346,958

Preneed:*
Domestic and international		27,112		29,045		33,374		37,123		39,229		44,486		56,157		83,715
Domestic independent runoff		8,565		6,048		5,784		6,704		6,907		7,362		14,613		14,269

Total Preneed		35,677		35,093		39,158		43,827		46,136		51,848		70,770		97,984

Total	$	629,682	$	645,364	$	690,150	$	669,344	$	666,935	$	644,612	$	1,275,046	$	1,311,547

Fees and other income:
Domestic:
Debt protection	$	8,434	$	9,636	$	10,014	$	10,541	$	10,232	$	9,271	$	18,070	$	19,503
Service contracts		27,509		23,156		28,249		23,384		23,068		27,709		50,665		50,777
Other		2,108		2,555		4,551		4,443		5,593		3,947		4,663		9,540

Total Domestic		38,051		35,347		42,814		38,368		38,893		40,927		73,398		79,820

International		6,920		6,395		6,928		7,400		7,330		6,072		13,315		13,402
Preneed		9,609		3,970		12,724		4,325		5,737		5,032		13,579		10,769

Total	$	54,580	$	45,712	$	62,466	$	50,093	$	51,960	$	52,031	$	100,292	$	103,991

*	As of January 1, 2009, net earned premiums are recorded in accordance with universal life insurance guidance. As a result, net earned premiums no longer include new preneed sales.

Page 8

Assurant Solutions

Condensed Statements of Operations (continued)

(Unaudited)


	2010						2009												Six Months
*($ in thousands)*	2Q			1Q			4Q			3Q			2Q			1Q			2010			2009
Gross written premiums:
Domestic:
Credit	$	107,259		$	103,870		$	120,139		$	134,597		$	136,450		$	135,346		$	211,129		$	271,796
Service contracts		291,426			277,729			261,165			259,316			245,306			246,883			569,155			492,189
Other		15,293			14,918			18,842			14,210			43,985			15,074			30,211			59,059

Total Domestic		413,978			396,517			400,146			408,123			425,741			397,303			810,495			823,044

International:
Credit		240,348			246,532			252,660			221,581			197,605			171,379			486,880			368,984
Service contracts		110,116			121,292			139,144			118,256			98,494			107,070			231,408			205,564
Other		6,330			5,216			6,794			7,652			6,734			5,387			11,546			12,121

Total International		356,794			373,040			398,598			347,489			302,833			283,836			729,834			586,669

Total	$	770,772		$	769,557		$	798,744		$	755,612		$	728,574		$	681,139		$	1,540,329		$	1,409,713

Foreign currency translation (FX) impact ⁽¹⁾:
Gross written premiums:
Including FX impact		5.79	%		12.98	%		-5.04	%		-16.29	%		-19.05	%		-23.85	%		9.27	%		-21.44	%
FX impact		4.37	%		6.23	%		3.24	%		-3.12	%		-5.03	%		-6.83	%		5.27	%		-5.93	%

Excluding FX impact		1.42	%		6.75	%		-8.28	%		-13.17	%		-14.02	%		-17.02	%		4.00	%		-15.51	%
Net earned premiums:
Including FX impact		-5.59	%		0.12	%		-4.43	%		-5.34	%		-4.81	%		-5.69	%		-2.78	%		-5.24	%
FX impact		2.25	%		3.32	%		1.63	%		-2.64	%		-3.76	%		-5.37	%		2.78	%		-4.55	%

Excluding FX impact		-7.84	%		-3.20	%		-6.06	%		-2.70	%		-1.05	%		-0.32	%		-5.56	%		-0.69	%
Net operating income:
Including FX impact		8.71	%		-4.77	%		154.14	%		55.21	%		-13.79	%		-36.26	%		1.69	%		-27.16	%
FX impact		5.57	%		5.02	%		4.79	%		-8.34	%		3.32	%		-0.51	%		5.28	%		1.04	%

Excluding FX impact		3.14	%		-9.79	%		149.35	%		63.55	%		-17.11	%		-35.75	%		-3.59	%		-28.20	%
Combined ratios ^(a):
Domestic		97.8	%		96.2	%		94.6	%		98.2	%		97.6	%		98.3	%		97.0	%		98.0	%
International		107.3	%		107.8	%		114.5	%		108.8	%		111.6	%		107.3	%		107.5	%		109.5	%
Investment yield ⁽²⁾		5.47	%		5.41	%		5.40	%		5.36	%		5.41	%		5.45	%		5.46	%		5.41	%

(a)	The combined ratio is equal to total benefits, losses and expenses divided by net earned premiums and other considerations and fees and other income excluding the preneed business.

(1)	Total Solutions percentage growth from year-ago period due to conversion of income statement transactions at weighted average foreign currency exchange rates.

(2)	Investment yield excludes investment (loss) income from real estate joint venture partnerships.

Page 9

Assurant Solutions - Preneed

Condensed Statements of Operations

(Unaudited)


	2010						2009												Six Months
*($ in thousands)*	2Q			1Q			4Q			3Q			2Q			1Q			2010			2009
Revenues:
Net earned premiums and other considerations	$	35,678		$	35,093		$	39,158		$	43,827		$	46,136		$	51,848		$	70,771		$	97,984
Net investment income		61,103			60,873			59,553			58,655			56,923			57,299			121,976			114,222
Fees and other income:
Change in value of CPI Caps ⁽¹⁾		(916	)		(4,424	)		5,086			(656	)		(35	)		1,779			(5,340	)		1,744
Other		10,526			8,394			7,638			4,981			5,772			3,253			18,920			9,025

Total fees and other income		9,610			3,970			12,724			4,325			5,737			5,032			13,580			10,769

		106,391			99,936			111,435			106,807			108,796			114,179			206,327			222,975

Benefits, losses and expenses:
Policyholder benefits		65,132			65,199			66,532			67,055			70,929			78,392			130,331			149,321
Selling, underwriting, general and administrative expenses		22,545			21,687			23,880			21,468			22,457			24,655			44,232			47,112

		87,677			86,886			90,412			88,523			93,386			103,047			174,563			196,433

Income before provision for income taxes		18,714			13,050			21,023			18,284			15,410			11,132			31,764			26,542
Income before provision for income taxes excluding CPI Cap		19,629			17,474			15,937			18,940			15,445			9,353			37,104			24,798
Provision for income taxes		6,895			4,657			7,162			6,524			5,338			3,834			11,552			9,172

Net operating income	$	11,819		$	8,393		$	13,861		$	11,760		$	10,072		$	7,298		$	20,212		$	17,370

Face sales	$	216,681		$	151,074		$	145,678		$	137,301		$	126,263		$	103,124		$	367,755		$	229,387
CPI Cap value	$	7,615		$	8,531		$	12,955		$	7,869		$	8,525		$	8,560		$	7,615		$	8,525
Preneed yield ⁽²⁾		5.85	%		5.91	%		5.87	%		5.89	%		5.83	%		5.94	%		5.88	%		5.86	%
Preneed average invested assets	$	4,178,346		$	4,118,775		$	4,055,563		$	3,996,330		$	3,907,868		$	3,861,302		$	4,147,369		$	3,896,518

(1)

The Company utilizes Consumer Price Index Caps (“CPI Caps”) derivative instruments in managing the pre-arranged funeral business exposure to inflation risk on certain policies. The CPI Caps do not qualify under GAAP as effective hedges; therefore, they are marked-to-market on a quarterly basis and the accumulated gain or loss is recognized in the statement of operations in fees and other income.

(2)	Investment yield excludes investment income (loss) from real estate joint venture partnerships.

Page 10

Assurant Specialty Property

Condensed Statements of Operations

(Unaudited)


	2010						2009												Six Months
*($ in thousands)*	2Q			1Q			4Q			3Q			2Q			1Q			2010			2009
Revenues:
Net earned premiums and other considerations	$	477,122		$	508,822		$	497,200		$	478,701		$	477,838		$	493,790		$	985,944		$	971,628
Net investment income		27,022			26,921			26,031			26,550			28,320			29,436			53,943			57,756
Fees and other income		18,848			13,100			14,824			15,100			13,642			13,324			31,948			26,966

		522,992			548,843			538,055			520,351			519,800			536,550			1,071,835			1,056,350

Benefits, losses and expenses:
Policyholder benefits		175,206			162,533			162,139			156,076			178,167			167,800			337,739			345,967
Selling, underwriting, general and administrative expenses		189,846			207,017			212,203			206,992			203,416			209,917			396,863			413,333

		365,052			369,550			374,342			363,068			381,583			377,717			734,602			759,300

Income before provision for income taxes		157,940			179,293			163,713			157,283			138,217			158,833			337,233			297,050
Provision for income taxes		54,223			60,815			56,769			54,126			46,989			54,165			115,038			101,154

Net operating income	$	103,717		$	118,478		$	106,944		$	103,157		$	91,228		$	104,668		$	222,195		$	195,896

Net earned premiums:
Homeowners (Creditor-Placed & Voluntary)	$	325,735		$	354,409		$	351,178		$	333,068		$	336,338		$	348,447		$	680,144		$	684,785
Manufactured Housing (Creditor-Placed & Voluntary)		53,686			57,500			54,609			54,347			55,128			55,876			111,186			111,004
Other		97,701			96,913			91,413			91,286			86,372			89,467			194,614			175,839

Total	$	477,122		$	508,822		$	497,200		$	478,701		$	477,838		$	493,790		$	985,944		$	971,628

Gross earned premiums:
Homeowners (Creditor-Placed & Voluntary)	$	446,650		$	463,570		$	460,289		$	427,030		$	430,568		$	437,391		$	910,220		$	867,959
Manufactured Housing (Creditor-Placed & Voluntary)		76,688			79,693			76,339			76,448			77,083			77,484			156,381			154,567
Other		160,897			155,471			150,695			150,604			147,449			151,429			316,368			298,878

Total	$	684,235		$	698,734		$	687,323		$	654,082		$	655,100		$	666,304		$	1,382,969		$	1,321,404

Gross written premiums:
Homeowners (Creditor-Placed & Voluntary)	$	435,403		$	440,073		$	533,454		$	437,835		$	437,271		$	412,706		$	875,476		$	849,977
Manufactured Housing (Creditor-Placed & Voluntary)		74,219			80,040			76,441			75,935			77,969			69,852			154,259			147,821
Other		195,609			156,853			157,209			167,968			154,864			131,701			352,462			286,565

Total	$	705,231		$	676,966		$	767,104		$	681,738		$	670,104		$	614,259		$	1,382,197		$	1,284,363

Reconciliation of gross earned premiums to net earned premiums:
Gross earned premiums	$	684,235		$	698,734		$	687,323		$	654,082		$	655,100		$	666,304		$	1,382,969		$	1,321,404
Ceded catastrophe reinsurance and reinstatements		(47,735	)		(45,129	)		(46,945	)		(48,794	)		(44,688	)		(42,994	)		(92,864	)		(87,682	)
Ceded to clients including U.S. Government		(159,378	)		(144,783	)		(143,178	)		(126,587	)		(132,574	)		(129,520	)		(304,161	)		(262,094	)

Net earned premiums	$	477,122		$	508,822		$	497,200		$	478,701		$	477,838		$	493,790		$	985,944		$	971,628

Page 11

Assurant Specialty Property (continued)

Condensed Statements of Operations

(Unaudited)


	2010						2009												Six Months
*($ in thousands)*	2Q			1Q			4Q			3Q			2Q			1Q			2010			2009
Creditor-Placed Homeowners Insurance ⁽¹⁾:
Loans tracked (in millions):
Prime		25.6			25.6			25.6			25.7			25.4			25.7			25.6			25.4
Sub-prime		3.6			3.6			3.9			3.8			3.6			3.8			3.6			3.6

Total		29.2			29.2			29.5			29.5			29.0			29.5			29.2			29.0

Average placement rates ⁽²⁾:
Prime		1.32	%		1.28	%		1.24	%		1.18	%		1.18	%		1.13	%		1.32	%		1.18	%
Sub-prime		9.54	%		9.54	%		9.51	%		9.51	%		9.39	%		9.14	%		9.54	%		9.39	%
Average insured value (AIV):
Creditor-placed	$	179		$	179		$	177		$	174		$	172		$	168		$	179		$	172
Real estate owned	$	234		$	228		$	227		$	226		$	228		$	228		$	234		$	228
Percent of creditor-placed premiums from real estate owned policies:
% of gross earned premiums		12	%		12	%		12	%		14	%		16	%		20	%		12	%		16	%
% of gross written premiums		12	%		12	%		9	%		12	%		12	%		20	%		12	%		12	%
Geographical spread of exposure⁽³⁾:
U.S. Region:
Middle U.S.		15.1	%		15.2	%		15.9	%		16.2	%		16.3	%		16.5	%		15.1	%		16.3	%
Northeastern coastal		16.6	%		16.1	%		15.9	%		15.2	%		14.7	%		14.2	%		16.6	%		14.7	%
Northern inland		3.6	%		3.7	%		3.7	%		3.8	%		3.8	%		3.8	%		3.6	%		3.8	%
Southern inland		8.9	%		9.4	%		9.9	%		9.8	%		9.7	%		9.5	%		8.9	%		9.7	%
Southern and Hawaii coastal		24.0	%		23.3	%		22.4	%		21.9	%		21.5	%		20.8	%		24.0	%		21.5	%
West		31.8	%		32.3	%		32.2	%		33.1	%		34.0	%		35.2	%		31.8	%		34.0	%

Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Ratios:
Loss ratio ^(a)		36.7	%		31.9	%		32.6	%		32.6	%		37.3	%		34.0	%		34.3	%		35.6	%
Expense ratio ^(b)		38.3	%		39.7	%		41.4	%		41.9	%		41.4	%		41.4	%		39.0	%		41.4	%
Combined ratio ^(c)		73.6	%		70.8	%		73.1	%		73.5	%		77.6	%		74.5	%		72.2	%		76.0	%
Investment yield ⁽⁴⁾		4.39	%		4.56	%		4.42	%		4.46	%		4.77	%		4.87	%		4.49	%		4.82	%

(a)	The loss ratio is equal to policyholder benefits divided by net earned premiums and other considerations.

(b)	The expense ratio is equal to selling, underwriting, general and administrative expenses divided by net earned premiums and other considerations and fees and other income.

(c)	The combined ratio is equal to total benefits, losses and expenses divided by net earned premiums and other considerations and fees and other income.

(1)	Estimates based on client information and classification.

(2)	Does not include real estate owned policies.

(3)	Geographical spread of exposure is based on the Company’s assessment of total insured value for all of Assurant Specialty Property.

(4)	Investment yield excludes investment income (loss) from real estate joint venture partnerships.

Page 12

Assurant Health

Condensed Statements of Operations

(Unaudited)


	2010						2009												Six Months
*($ in thousands)*	2Q			1Q			4Q			3Q			2Q			1Q			2010			2009
Revenues:
Net earned premiums and other considerations	$	467,705		$	467,442		$	468,002		$	470,385		$	468,895		$	472,346		$	935,147		$	941,241
Net investment income		12,078			11,565			11,338			11,770			12,073			12,477			23,643			24,550
Fees and other income		10,248			10,408			9,978			10,140			9,847			9,914			20,656			19,761

		490,031			489,415			489,318			492,295			490,815			494,737			979,446			985,552

Benefits, losses and expenses:
Policyholder benefits		312,767			333,640			377,155			353,412			357,644			321,960			646,407			679,604
Selling, underwriting, general and administrative expenses		138,801			143,119			157,826			147,475			149,157			150,240			281,920			299,397

		451,568			476,759			534,981			500,887			506,801			472,200			928,327			979,001

Income (loss) before provision (benefit) for income taxes		38,463			12,656			(45,663	)		(8,592	)		(15,986	)		22,537			51,119			6,551
Provision (benefit) for income taxes		13,163			4,287			(15,948	)		(3,745	)		(5,656	)		7,865			17,450			2,209

Net operating income (loss)	$	25,300		$	8,369		$	(29,715	)	$	(4,847	)	$	(10,330	)	$	14,672		$	33,669		$	4,342

Net earned premiums and other considerations:
Individual:
Individual medical	$	324,079		$	321,783		$	319,215		$	317,820		$	316,093		$	317,070		$	645,862		$	633,163
Short-term medical		21,434			22,118			24,308			27,278			26,604			26,048			43,552			52,652

Subtotal		345,513			343,901			343,523			345,098			342,697			343,118			689,414			685,815
Small employer group		122,192			123,541			124,479			125,287			126,198			129,228			245,733			255,426

Total	$	467,705		$	467,442		$	468,002		$	470,385		$	468,895		$	472,346		$	935,147		$	941,241

Sales (annualized issued premiums):
Individual:
Individual medical	$	83,696		$	94,249		$	92,068		$	91,434		$	84,707		$	88,769		$	177,945		$	173,476
Short-term medical		26,262			28,314			27,870			34,296			34,509			37,199			54,576			71,708

Subtotal		109,958			122,563			119,938			125,730			119,216			125,968			232,521			245,184
Small employer group		30,445			35,705			33,701			31,588			37,708			29,978			66,150			67,686

Total	$	140,403		$	158,268		$	153,639		$	157,318		$	156,924		$	155,946		$	298,671		$	312,870

Membership by product line (in thousands):
Individual:
Individual medical		558			564			568			568			570			572			558			570
Short-term medical		73			71			78			91			95			94			73			95

Subtotal		631			635			646			659			665			666			631			665
Small employer group		116			118			121			122			123			123			116			123

Total		747			753			767			781			788			789			747			788

Ratios:
Loss ratio ^(a)		66.9	%		71.4	%		80.6	%		75.1	%		76.3	%		68.2	%		69.1	%		72.2	%
Expense ratio^(b)		29.0	%		30.0	%		33.0	%		30.7	%		31.2	%		31.2	%		29.5	%		31.2	%
Combined ratio ^(c)		94.5	%		99.8	%		111.9	%		104.2	%		105.9	%		97.9	%		97.1	%		101.9	%
Investment yield ⁽¹⁾		5.01	%		4.82	%		4.82	%		5.24	%		5.45	%		5.59	%		4.92	%		5.51	%

(a)	The loss ratio is equal to policyholder benefits divided by net earned premiums and other considerations.

(b)	The expense ratio is equal to selling, underwriting, general and administrative expenses divided by net earned premiums and other considerations and fees and other income.

(c)	The combined ratio is equal to total benefits, losses and expenses divided by net earned premiums and other considerations and fees and other income.

(1)	Investment yield excludes investment (loss) income from real estate joint venture partnerships.

Page 13

Assurant Employee Benefits

Condensed Statements of Operations

(Unaudited)


	2010						2009												Six Months
*($ in thousands)*	2Q			1Q			4Q			3Q			2Q			1Q			2010			2009
Revenues:
Net earned premiums and other considerations	$	275,386		$	285,015		$	270,140		$	255,968		$	262,198		$	263,831		$	560,401		$	526,029
Net investment income		32,599			32,810			32,703			33,039			33,466			34,157			65,409			67,623
Fees and other income		6,252			7,311			6,578			7,467			7,540			6,758			13,563			14,298

		314,237			325,136			309,421			296,474			303,204			304,746			639,373			607,950

Benefits, losses and expenses:
Policyholder benefits		190,555			204,242			188,940			182,632			186,770			198,728			394,797			385,498
Selling, underwriting, general and administrative expenses		104,667			95,922			103,092			96,529			97,993			95,287			200,589			193,280

		295,222			300,164			292,032			279,161			284,763			294,015			595,386			578,778

Income before provision for income taxes		19,015			24,972			17,389			17,313			18,441			10,731			43,987			29,172
Provision for income taxes		6,622			8,505			5,833			5,863			6,313			3,709			15,127			10,022

Net operating income	$	12,393		$	16,467		$	11,556		$	11,450		$	12,128		$	7,022		$	28,860		$	19,150

Net earned premiums and other considerations:
Group dental	$	104,778		$	107,581		$	108,910		$	105,507		$	105,306		$	105,565		$	212,359		$	210,871
All other group disability		121,880			129,927			112,722			103,460			108,495			109,704			251,807			218,199
Group life		48,728			47,507			48,508			47,001			48,397			48,562			96,235			96,959

Total	$	275,386		$	285,015		$	270,140		$	255,968		$	262,198		$	263,831		$	560,401		$	526,029

Sales ⁽¹⁾:
Group dental	$	12,842		$	33,549		$	14,354		$	21,202		$	16,904		$	31,573		$	46,391		$	48,477
Group disability		7,257			13,516			6,351			10,587			8,207			14,172			20,773			22,379
Group life		5,188			8,517			4,509			6,547			5,086			9,859			13,705			14,945

Total	$	25,287		$	55,582		$	25,214		$	38,336		$	30,197		$	55,604		$	80,869		$	85,801

Loss ratio ^(a)		69.2	%		71.7	%		69.9	%		71.3	%		71.2	%		75.3	%		70.4	%		73.3	%
Expense ratio ^(b)		37.2	%		32.8	%		37.3	%		36.6	%		36.3	%		35.2	%		34.9	%		35.8	%
Investment yield ⁽²⁾		5.78	%		5.77	%		5.79	%		5.88	%		5.86	%		5.98	%		5.78	%		5.92	%

(a)	The loss ratio is equal to policyholder benefits divided by net earned premiums and other considerations.

(b)	The expense ratio is equal to selling, underwriting, general and administrative expenses divided by net earned premiums and other considerations and fees and other income.

(1)	Sales do not include any sales from assumed business, only direct.

(2)	Investment yield excludes investment (loss) income from real estate joint venture partnerships.

Page 14

Assurant Corporate and Other

Condensed Statements of Operations

(Unaudited)


	2010						2009												Six Months
*($ in thousands)*	2Q			1Q			4Q			3Q			2Q			1Q			2010			2009
Revenues:
Net earned premiums and other considerations	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment income		4,541			4,265			3,984			3,884			3,967			4,414			8,806			8,381
Net realized gains (losses) on investments		19,152			4,473			(11,632	)		19,866			(6,142	)		(55,689	)		23,625			(61,831	)
Amortization of deferred gains on disposal of businesses		6,024			6,081			2,107			6,802			6,750			6,802			12,105			13,552
Fees and other income		99			114			(174	)		83			139,214			1,679			213			140,893

		29,816			14,933			(5,715	)		30,635			143,789			(42,794	)		44,749			100,995

Benefits, losses and expenses:
Policyholder benefits		(1,988	)		(50	)		1,988			92			5,496			(168	)		(2,038	)		5,328
Selling, underwriting, general and administrative expenses		29,875			19,185			22,474			20,289			27,575			23,431			49,060			51,006
Interest expense		15,161			15,161			15,160			15,160			15,160			15,189			30,322			30,349

		43,048			34,296			39,622			35,541			48,231			38,452			77,344			86,683

(Loss) income before (benefit) provision for income taxes		(13,232	)		(19,363	)		(45,337	)		(4,906	)		95,558			(81,246	)		(32,595	)		14,312
(Benefit) provision for income taxes		(6,174	)		(4,406	)		(21,290	)		(8,232	)		23,156			(5,154	)		(10,580	)		18,002

Net (loss) income	$	(7,058	)	$	(14,957	)	$	(24,047	)	$	3,326		$	72,402		$	(76,092	)	$	(22,015	)	$	(3,690	)

Corporate and Other Reconciliation
Assurant Corporate and Other Segment Net (loss) income Adjustments, net of tax:	$	(7,058	)	$	(14,957	)	$	(24,047	)	$	3,326		$	72,402		$	(76,092	)	$	(22,015	)	$	(3,690	)
Amortization of deferred gains on disposal of businesses		(3,916	)		(3,953	)		(1,370	)		(4,421	)		(4,388	)		(4,421	)		(7,869	)		(8,809	)
Interest expense		9,855			9,855			9,854			9,854			9,854			9,873			19,710			19,727
Net realized (gains) losses on investments		(12,449	)		(2,907	)		7,561			(12,913	)		3,992			36,198			(15,356	)		40,190
Change in tax valuation allowance		—			—			(936	)		(7,043	)		(13,021	)		—			—			7,979
Legal settlement and related expenses		—			—			—			1,454			(84,996	)		21,000			—			(84,996	)

Corporate and other line item result⁽¹⁾	$	(13,568	)	$	(11,962	)	$	(8,938	)	$	(9,743	)	$	(16,157	)	$	(13,442	)	$	(25,530	)	$	(29,599	)

(1)	Reconciles to Corporate and other result per Reconciliation of Net Operating Income to Net Income (Loss) on page 5.

Page 15

Assurant, Inc.

Investments

(Unaudited)


	At June 30,				At December 31,
*($ in thousands)*	2010				2009
Investments by type
Fixed maturity securities available for sale, at fair value	$	10,651,689	72.5	%	$	9,966,772	68.9	%
Equity securities available for sale, at fair value
Preferred stock		474,341	3.2	%		508,458	3.5	%
Common stock		1,305	0.0	%		4,529	0.0	%
Commercial mortgage whole loans on real estate, at amortized cost		1,376,226	9.4	%		1,428,027	9.9	%
Policy loans		56,169	0.4	%		56,407	0.4	%
Short-term investments		416,815	2.8	%		453,469	3.1	%
Collateral held under securities lending		133,618	0.9	%		218,129	1.5	%
Other investments		578,583	4.0	%		522,041	3.6	%

Total investments		13,688,746	93.2	%		13,157,832	90.9	%
Cash and cash equivalents		1,003,723	6.8	%		1,318,552	9.1	%

Total investments and cash and cash equivalents	$	14,692,469	100.0	%	$	14,476,384	100.0	%

Fixed Maturity Securities by Credit Quality (Fair Value)
Aaa / Aa / A	$	6,520,387	61.2	%	$	6,152,842	61.8	%
Baa		3,152,861	29.6	%		2,953,964	29.6	%
Ba		716,263	6.7	%		647,321	6.5	%
B and lower		262,178	2.5	%		212,645	2.1	%

Total	$	10,651,689	100.0	%	$	9,966,772	100.0	%

Page 16

Assurant, Inc.

Investments (continued)

(Unaudited)


	At June 30, 2010								At December 31, 2009
*($ in thousands)*	Book Value		Fair Value		% of Fair Value		Net Unrealized Gain		Book Value		Fair Value		% of Fair Value		Net Unrealized Gain (Loss)
Fixed Maturity Securities by Issuer Type:
Government:
U.S. Government and government agencies	$	143,964	$	151,327	1.4	%	$	7,363	$	115,268	$	120,330	1.2	%	$	5,062
State, municipalities and political subdivisions		856,138		911,871	8.6	%		55,733		873,548		910,068	9.1	%		36,520
Foreign governments		577,923		604,238	5.7	%		26,315		558,254		572,827	5.8	%		14,573
Corporate (1):
Consumer cyclical		1,063,710		1,148,715	10.8	%		85,005		975,965		1,014,735	10.2	%		38,770
Consumer non-cyclical		349,022		383,807	3.6	%		34,785		306,841		322,638	3.2	%		15,797
Energy		714,435		761,350	7.1	%		46,915		751,097		790,437	7.9	%		39,340
Financials		2,090,348		2,148,494	20.2	%		58,146		2,089,298		2,076,599	20.8	%		(12,699	)
Health care		421,093		455,726	4.3	%		34,633		416,581		431,155	4.3	%		14,574
Industrials		961,905		1,032,381	9.7	%		70,476		928,154		952,792	9.6	%		24,638
Materials		325,734		337,950	3.2	%		12,216		287,338		292,502	2.9	%		5,164
Technology		153,664		167,832	1.6	%		14,168		150,542		156,272	1.6	%		5,730
Telecommunications		475,968		515,365	4.8	%		39,397		474,025		502,267	5.0	%		28,242
Utilities		894,707		982,283	9.2	%		87,576		856,645		894,794	9.0	%		38,149
Other corporate		346		352	0.0	%		6		349		357	0.0	%		8
Asset-backed securities		43,921		46,381	0.4	%		2,460		51,834		53,963	0.5	%		2,129
Commercial mortgage-backed securities		114,201		119,520	1.1	%		5,319		159,780		159,907	1.6	%		127
Residential mortgage-backed securities (RMBS):
Agency		819,396		860,404	8.1	%		41,008		663,407		690,632	6.9	%		27,225
Alt-A		—		—	0.0	%		—		—		—	0.0	%		—
Subprime		14,689		16,490	0.2	%		1,801		17,739		17,307	0.2	%		(432	)
Other		3,687		3,703	0.0	%		16		4,227		4,064	0.1	%		(163	)
Collaterized debt obligations:
Credit backed		2,898		3,500	0.0	%		602		3,191		3,126	0.1	%		(65	)
RMBS backed		—		—	0.0	%		—		—		—	0.0	%		—

Total fixed maturity securities	$	10,027,749	$	10,651,689	100.0	%	$	623,940	$	9,684,083	$	9,966,772	100.0	%	$	282,689

(1)	Industry classifications are based on a combination of published index classifications as well as Assurant’s view of underlying issuer risk. These resulting classifications are then mapped to the Global Industry Classification Standard (GICS^®).

Page 17

Assurant, Inc.

Investment Results by Asset Category and Annualized Yields

(Unaudited)


	Quarter Ended June 30 2010								Quarter Ended June 30 2009
*($ in thousands)*	Yield		Investment Income			Net realized gain (loss)			Yield		Investment Income			Net realized gain (loss)
Fixed maturity securities, available for sale	5.73	%	$	144,119		$	13,086		5.90	%	$	139,767		$	1,373
Equity securities, available for sale	6.97	%		8,589			1,266		7.34	%		9,516			(855	)
Commercial mortgage whole loans on real estate	6.19	%		21,515			—		6.32	%		23,420			(5,306	)
Policy loans	5.21	%		732			—		5.70	%		815			—
Cash and short-term investments	0.75	%		2,608			6		1.21	%		4,035			50
Other investments*	2.82	%		4,029			4,794		3.33	%		4,222			(1,404	)

Total				181,592		$	19,152					181,775		$	(6,142	)

Investment expenses				(6,396	)							(6,843	)

Net investment income			$	175,196							$	174,932

Gross realized gains						$	23,375							$	8,750
Gross realized losses							(2,268	)							(10,578	)
Other-than-temporary impairments on available for sale securities							(1,955	)							(4,314	)

Net realized gains (losses) on investments						$	19,152							$	(6,142	)


	Six Months Ended June 30 2010								Six Months Ended June 30 2009
	Yield		Investment Income			Net realized gain (loss)			Yield		Investment Income			Net realized gain (loss)
Fixed maturity securities, available for sale	5.77	%	$	286,537		$	23,140		5.93	%	$	278,540		$	(18,740	)
Equity securities, available for sale	7.02	%		17,551			2,430		7.27	%		19,386			(36,395	)
Commercial mortgage whole loans on real estate	6.21	%		43,609			(6,772	)	6.32	%		47,102			(5,306	)
Policy loans	5.17	%		1,454			—		5.54	%		1,591			—
Cash and short-term investments	0.60	%		4,594			7		1.42	%		10,418			54
Other investments*	3.07	%		8,524			4,820		3.97	%		10,009			(1,444	)

Total				362,269		$	23,625					367,046		$	(61,831	)

Investment expenses				(13,059	)							(13,635	)

Net investment income			$	349,210							$	353,411

Gross realized gains						$	38,224							$	15,346
Gross realized losses							(11,799	)							(47,424	)
Other-than-temporary impairments on available for sale securities							(2,800	)							(29,753	)

Net realized losses on investments						$	23,625							$	(61,831	)

*	Consists primarily of investments in joint venture partnerships, invested assets associated with a modified coinsurance agreement, and invested assets associated with deferred compensation plans.

Page 18

Assurant, Inc.

Summary of Net Operating Income ⁽¹⁾ Disclosed Items

Income / (Expense) Items

(Unaudited)


			2010								2009
*($ in millions, after-tax)*			2Q				1Q				4Q				3Q				2Q				1Q
			$		Diluted EPS		$		Diluted EPS		$		Diluted EPS		$		Diluted EPS		$		Diluted EPS		$		Diluted EPS
Assurant Solutions:
Restructuring costs	(d	)	—		—		—		—		(8.4	)	(0.07	)	—		—		(2.4	)	(0.02	)	—		—
Change in various tax liabilities/receivables	(e	)	—		—		(2.8	)	(0.02	)	—		—		—		—		—		—		—		—
Assurant Specialty Property:
Catastrophe losses, net of reinsurance	(c	)	(5.0	)	(0.04	)	—		—		—		—		—		—		—		—		—		—
Restructuring costs	(d	)	—		—		—		—		—		—		—		—		(2.5	)	(0.02	)	—		—
Subrogation reimbursement	(c	)	—		—		—		—		—		—		5.9		0.05		—		—		—		—
Unearned premium reserve review adjustment (2)	(a	)	—		—		7.6		0.06		—		—		—		—		—		—		—		—
Assurant Health:
Reserve strengthening	(c	)	—		—		—		—		—		—		—		—		(9.0	)	(0.08	)	—		—
Litigation reserve	(c	)	17.4		0.15		—		—		(24.0	)	(0.20	)	(8.1	)	(0.07	)	—		—		—		—
Restructuring costs	(d	)	—		—		—		—		(2.9	)	(0.02	)	—		—		—		—		—		—
H1N1 related medical expenses	(c	)	—		—		—		—		(2.5	)	(0.02	)	—		—		—		—		—		—
Assurant Employee Benefits:
Reserve adequacy study adjustment	(c	)	—		—		—		—		2.1		0.02		—		—		—		—		—		—
Restructuring costs	(d	)	(4.4	)	(0.04	)	—		—		(1.0	)	(0.01	)	—		—		(1.5	)	(0.01	)	—		—
Assurant Corporate and Other:
Expenses related to SEC investigation (3)	(d	)	—		—		—		—		(3.5	)	(0.03	)	—		—		—		—		—		—
Change in various tax liabilities/receivables	(e	)	—		—		—		—		4.5		0.04		—		—		—		—		—		—
Compensation expense	(d	)	—		—		—		—		—		—		—		—		—		—		(4.6	)	(0.04	)
Restructuring costs	(d	)	(2.9	)	(0.03	)	—		—		—		—		—		—		—		—		—		—

Statement of Operations line impact:

(a)	Net earned premiums and other considerations

(b)	Fees and other income

(c)	Policyholder benefits

(d)	Selling, underwriting, general and administrative expenses

(e)	Provision for income taxes

(1)	See Footnote (1) Regulation G - Non GAAP Financial Measures on page 1.

(2)	In the first quarter 2010, the $7.6 million represents the net impact on net operating income. It increased net earned premiums by $13.6 million pre-tax.

(3)	This item includes both SEC investigation-related expenses and reimbursements received related to SEC expenses covered under Director & Officer insurance.

Page 19

Assurant, Inc.

Ratings Summary

(Unaudited)


	As of June 30, 2010
	A.M. Best	Moody’s	Standard & Poor’s
Outlook	Stable	Stable	Negative
Company
American Bankers Insurance Company	A	A2	A-
American Bankers Insurance Company (CAB)	A	N/A	N/A
American Bankers Life Assurance Company	A-	A2	A-
American Bankers Life Assurance Company (CAB)	A-	N/A	N/A
American Memorial Life Insurance Company	A-	N/A	A-
American Reliable Insurance Company	A	N/A	N/A
American Security Insurance Company	A	A2	A-
Assurant Life of Canada	A-	N/A	N/A
Caribbean American Life Assurance Company	A-	N/A	N/A
Caribbean American Property Insurance Company	A	N/A	N/A
John Alden Life Insurance Company	A-	A2	BBB+
Reliable Lloyds	A	N/A	N/A
Standard Guaranty Insurance Company	A	N/A	N/A
Time Insurance Company	A-	A2	BBB+
UDC Dental California	A-	N/A	N/A
Union Security Dental Care New Jersey	A-	N/A	N/A
Union Security Insurance Company	A-	A2	A-
Union Security Life Insurance Company of New York	A-	N/A	N/A
United Dental Care of Arizona	A-	N/A	N/A
United Dental Care of Colorado	A-	N/A	N/A
United Dental Care of Michigan	NR-3	N/A	N/A
United Dental Care of Missouri	A-	N/A	N/A
United Dental Care of New Mexico	A-	N/A	N/A
United Dental Care of Ohio	NR-3	N/A	N/A
United Dental Care of Texas	A-	N/A	N/A
United Dental Care of Utah	NR-3	N/A	N/A
Voyager Indemnity Insurance Company	A	N/A	N/A
Commercial Paper	AMB-2	P-2	A-2
Senior Debt	bbb	Baa1	BBB

Page 20

Exhibit I

Assurant, Inc.

Commercial Mortgage Loans Summary ⁽¹⁾

(Unaudited)


	As of June 30, 2010
*($ in thousands)*	Book Value			% of Total
Summary of Commercial Mortgage Loans
*Geographic Region*
Pacific	$	476,101		34	%
Middle Atlantic		243,808		17	%
New England		169,031		12	%
South Atlantic		164,738		12	%
Mountain		154,298		11	%
West South Central		82,738		6	%
West North Central		42,738		3	%
East South Central		24,827		2	%
Canada		24,672		2	%
East North Central		16,176		1	%
Allowance for loan losses		(22,901	)	—

Total	$	1,376,226		100	%

*Property Type*
Retail	$	456,504		33	%
Office		462,984		33	%
Industrial		362,971		26	%
Other		58,183		4	%
Apartments		58,485		4	%
Allowance for loan losses		(22,901	)	—

Total	$	1,376,226		100	%

*Loan Size*
Under $3 million	$	563,853		40	%
$3 million but less than $6 million		443,787		32	%
$6 million but less than $9 million		227,768		16	%
$9 million but less than $12 million		70,083		5	%
$12 million and over		93,636		7	%
Allowance for loan losses		(22,901	)	—

Total	$	1,376,226		100	%

Commercial Mortgage Loan Information by Vintage

As of June 30, 2010


Loan year	Book value			Delinquent loan balance	Number of loans *(whole number)*	Number of delinquent loans	Average balance per loan		Book value weighted average loan-to-value⁽²⁾
2004 and prior	$	535,231		—	266	—	$	2,012	46.40	%
2005		241,741		—	71	—		3,405	66.15	%
2006		160,185		—	61	—		2,626	62.74	%
2007		283,297		—	89	—		3,183	78.11	%
2008		152,373		—	42	—		3,628	72.32	%
2009		18,099		—	3	—		6,033	71.95	%
2010		8,201		—	3	—		2,734	45.82	%
Allowance for loan losses		(22,901	)	—	N/A	—		N/A	N/A

Total	$	1,376,226		—	535	—	$	2,572	61.25	%

(1)	We originate fixed rate mortgage loans on commercial real estate. We are the sole lender and generally hold these loans to maturity. We do not typically securitize or otherwise sell these loans.

(2)	Based on property appraisals as of September 30, 2009.

Page 21

Exhibit II

Assurant, Inc. and Subsidiaries

Top 10 Foreign Government Exposures

(unaudited)


	As of June 30, 2010
*($ in thousands)*	Fixed Maturity Securities
Issuer	Fair Value		Book Value		Unrealized Gain/Loss
Province of Ontario	$	148,120	$	140,332	$	7,788
Province of Quebec		70,044		66,205		3,839
Government of Brazil		67,962		67,869		93
Province of British Columbia		43,409		41,871		1,538
United Kingdom of Great Britain		36,457		34,538		1,919
Corp Andina de Fomento		33,596		31,058		2,538
Province of Manitoba		27,901		26,646		1,255
Canada Housing Trust		22,173		22,034		139
United Mexican States		21,526		17,722		3,804
Bundesobligation		16,447		15,605		842
Other		116,603		114,043		2,560

	$	604,238	$	577,923	$	26,315

Page 22

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