ASSURANT INC

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and the annual audited consolidated financial statements for the year ended December 31, 2023 and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) and the unaudited consolidated financial statements for the three months ended March 31, 2024 and accompanying notes (the “Consolidated Financial Statements”) included elsewhere in this Quarterly Report on Form 10-Q (this “Report”). The following discussion and analysis covers the three months ended March 31, 2024 (“First Quarter 2024”) and the three months ended March 31, 2023 (“First Quarter 2023”).

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and the annual audited consolidated financial statements for the year ended December 31, 2023 and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) and the unaudited consolidated financial statements for the three and six months ended June 30, 2024 and accompanying notes (the “Consolidated Financial Statements”) included elsewhere in this Quarterly Report on Form 10-Q (this “Report”). The following discussion and analysis covers the three and six months ended June 30, 2024 (“Second Quarter 2024” and “Six Months 2024”) and the three and six months ended June 30, 2023 (“Second Quarter 2023” and “Six Months 2023”).

Previous wording

Global Lifestyle net earned premiums, fees and other income increased $147.5 million, or 7%, to $2.19 billion for First Quarter 2024 from $2.04 billion for First Quarter 2023, primarily driven by Connected Living from mobile growth, including contributions from newly launched trade-in programs and device protection programs in North America, as well as growth in Global Automotive from prior period sales.

Current wording

Global Lifestyle net earned premiums, fees and other income increased $74.6 million, or 4%, to $2.18 billion for Second Quarter 2024 from $2.11 billion for Second Quarter 2023, primarily driven by Connected Living from mobile growth, including contributions from newly launched trade-in programs and global device protection programs.

Previous wording

Global Housing Adjusted EBITDA increased $124.1 million, or 181%, to $192.5 million for First Quarter 2024 from $68.4 million for First Quarter 2023, including $36.6 million of lower pre-tax reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA increased $87.5 million, or 74%, with over half of the increase driven by lower non-catastrophe loss experience, including impacts from lower claims severity and a $15.7 million favorable year-over-year impact from prior period reserve development. Results also benefited from continued top-line growth within Homeowners, ongoing expense leverage from scale and operational efficiencies, and lower catastrophe reinsurance premiums.

Current wording

Global Housing Adjusted EBITDA increased $6.3 million, or 4%, to $160.9 million for Second Quarter 2024 from $154.6 million for Second Quarter 2023, and included $32.1 million of higher pre-tax reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA increased $38.4 million, or 23%, primarily from continued top-line growth within Homeowners, including higher policies in-force from new lender-placed programs and portfolios. Results also benefited from ongoing expense leverage from scale and operational efficiencies. The increase was partially offset by $10.7 million of unfavorable year-over-year net impact to prior period reserve development. Second Quarter 2024 had $17.0 million of favorable development compared to $27.7 million in the Second Quarter 2023.

Previous wording

Global Housing net earned premiums, fees and other income increased $66.9 million, or 13%, to $572.2 million for First Quarter 2024 from $505.3 million for First Quarter 2023, mainly driven by Homeowners top-line growth, including higher average premiums and growth in policies in-force within lender-placed. Lower catastrophe reinsurance premiums, including impacts from changing the timing of program placement, and growth in Renters and Other also contributed to the increase.

Current wording

Global Housing net earned premiums, fees and other income increased $97.0 million, or 18%, to $633.6 million for Second Quarter 2024 from $536.6 million for Second Quarter 2023, mainly driven by Homeowners top-line growth, including growth in policies in-force and higher average premiums within lender-placed insurance.

Previous wording

Corporate and Other Adjusted EBITDA was $(29.5) million for First Quarter 2024 compared to $(24.4) million for First Quarter 2023, primarily driven by higher expenses to support enterprise growth initiatives.

Current wording

Corporate and Other Adjusted EBITDA was $(27.2) million for Second Quarter 2024 compared to $(28.5) million for Second Quarter 2023, primarily driven by higher net investment income from higher asset levels and yields.

Previous wording

Our results may be impacted by our ability to continue to grow in the markets in which we operate, including in our Connected Living and Global Automotive businesses, which will be impacted by our ability to provide a superior digital-first customer experience, including from our investments in technology and digital initiatives, capitalize on the connected home opportunity and investments to onboard and ramp-up new business. Our mobile business is subject to volatility in mobile device trade-in volumes and margins based on the actual and anticipated timing of the release of new devices, carrier promotional programs and sales prices for used devices, as well as to changes in consumer preferences. Our Homeowners revenues is impacted by changes in the housing market. In addition, across many of our businesses, we must respond to competitive pressures, including the threat of disruption and competition for talent, which has increased due to labor shortages and wage inflation. See “Item 1A—Risk Factors—Business, Strategic and Operational Risks—Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations”, “—Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks” and “—The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce” in our 2023 Annual Report.

Current wording

Our results may be impacted by our ability to continue to grow in the markets in which we operate, which will be impacted by our ability to provide a superior digital-first customer experience, including from our investments in technology and digital initiatives, capitalize on the connected home opportunity and investments to onboard and ramp-up new business. Our mobile business is subject to volatility in mobile device trade-in volumes and margins based on the actual and anticipated timing of the release of new devices, carrier promotional programs and sales prices for used devices, as well as to changes in consumer preferences. Our Homeowners revenues is impacted by changes in the housing market. In addition, across many of our businesses, we must respond to competitive pressures, including the threat of disruption and competition for talent, which has increased due to labor shortages and wage inflation. See “Item 1A—Risk Factors—Business, Strategic and Operational Risks—Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations”, “—Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks” and “—The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce” in our 2023 Annual Report.

Previous wording

Our 2023 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition and liquidity. The accounting policies and estimation process described in the 2023 Annual Report were consistently applied to the unaudited interim Consolidated Financial Statements for First Quarter 2024.

Current wording

Our 2023 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition and liquidity. The accounting policies and estimation process described in the 2023 Annual Report were consistently applied to the unaudited interim Consolidated Financial Statements for Second Quarter 2024.

Previous wording

Net income increased $122.8 million to $236.4 million for First Quarter 2024 from $113.6 million for First Quarter 2023, primarily due to higher earnings in Global Housing, including $28.9 million of lower after-tax reportable catastrophes, a lower annualized effective tax rate, mainly due to transferable tax credits and a favorable mix of foreign business, a $7.7 million favorable change in after-tax foreign exchange related gains (losses), $7.7 million of lower after-tax losses from our non-core operations and higher earnings in Global Lifestyle. The increase in net income was partially offset by the absence of a $5.9 million after-tax gain for Assurant Health runoff operations from First Quarter 2023 related to our prior participation in the risk adjustment program introduced by the Patient Protection and Affordable Care Act of 2010.

Current wording

Net income increased $32.4 million, or 21%, to $188.7 million for Second Quarter 2024 from $156.3 million for Second Quarter 2023, primarily due to $20.9 million of lower after-tax losses from our non-core operations, mainly from sharing economy, a lower annualized effective tax rate, mainly due to transferable tax credits and a favorable mix of foreign business, a $5.7 million favorable change in after-tax foreign exchange related gains (losses) (including gains (losses) from foreign exchange transactions and derivatives and from the remeasurement of net monetary assets in Argentina) and higher earnings in Global Housing. The increase in net income was partially offset by $25.5 million of higher after-tax reportable catastrophes and lower earnings in Global Lifestyle.

Previous wording

Adjusted EBITDA increased $8.8 million, or 4%, to $207.7 million for First Quarter 2024 from $198.9 million for First Quarter 2023, primarily driven by higher net investment income across Global Lifestyle, as well as growth in Connected Living from stronger mobile device protection results across carrier and cable operator clients in North America and a one-time $6.9 million client contract benefit in extended service contracts in First Quarter 2024. The increase in Adjusted EBITDA was partially offset by ongoing elevated claims costs in Global Automotive, including higher labor and parts costs due to inflation, and the normalization of select ancillary products, and new client and program implementation expenses as well as the unfavorable impact of foreign exchange.

Current wording

Adjusted EBITDA decreased $7.3 million, or 4%, to $189.7 million for Second Quarter 2024 from $197.0 million for Second Quarter 2023, primarily driven by ongoing elevated claims costs in Global Automotive from higher labor and parts costs due to inflation, including due to higher frequency in select ancillary products, higher expenses for investments in new client programs and capabilities, lower mobile trade-in volumes and the unfavorable impact of foreign exchange. The decrease in Adjusted EBITDA was partially offset by growth in Connected Living from global mobile device protection programs, including increased subscribers, and higher U.S. financial services profitability, as well as higher net investment income across Global Lifestyle.

Previous wording

Total revenues increased $161.0 million, or 8%, to $2.28 billion for First Quarter 2024 from $2.12 billion for First Quarter 2023. Fees and other income increased $101.3 million, or 40%, primarily due to contributions from newly launched mobile trade-in programs. Net earned premiums increased $46.2 million, or 3%, primarily driven by growth from prior period sales in Global Automotive and growth in North American mobile device protection programs in Connected Living. Net investment income increased $13.5 million, or 18%, primarily due to higher yields on fixed maturity securities, cash and cash equivalents and short-term investments.

Current wording

Total revenues increased $240.4 million, or 6%, to $4.55 billion for Six Months 2024 from $4.31 billion for Six Months 2023. Fees and other income increased $154.6 million, or 30%, primarily due to contributions from newly launched mobile trade-in programs. Net earned premiums increased $67.5 million, or 2%, primarily driven by growth from global mobile device protection programs in Connected Living and from prior period sales in Global Automotive, partially offset by a decline in extended service contracts in Connected Living. Net investment income increased $18.3 million, or 12%, primarily due to higher yields in fixed maturity securities, cash and cash equivalents and short-term investments.

Previous wording

Total benefits, losses and expenses increased $152.2 million, or 8%, to $2.07 billion for First Quarter 2024 from $1.92 billion for First Quarter 2023. Underwriting, selling, general and administrative expenses increased $105.5 million, or 7%, primarily due to higher cost of sales in Connected Living from newly launched mobile trade-in programs and higher commission expenses due to growth from prior period sales in the Global Automotive business. Policyholder benefits increased $46.7 million, or 13%, primarily due to ongoing elevated claims costs in Global Automotive, as described above, and from higher claims in the European mobile business in Connected Living.

Current wording

Total benefits, losses and expenses increased $238.9 million, or 6%, to $4.15 billion for Six Months 2024 from $3.91 billion for Six Months 2023. Underwriting, selling, general and administrative expenses increased $182.7 million, or 6%, primarily due to an increase in Connected Living expenses, mainly from higher cost of sales from newly launched mobile trade-in programs and higher commission expenses due to growth from global mobile device protection programs, partially offset by lower commission expenses for extended service contracts. Policyholder benefits increased $56.2 million, or 7%, primarily due to ongoing elevated claims costs in Global Automotive, as described above, and from higher claims in the global mobile device protection business in Connected Living, partially offset by lower losses for extended service contracts in Connected Living in line with the decrease in net earned premiums.

Previous wording

Adjusted EBITDA increased $124.1 million, or 181%, to $192.5 million for First Quarter 2024 from $68.4 million for First Quarter 2023, mainly due to lower non-catastrophe loss experience, including the impacts of lower severity and a $15.7 million year-over-year impact from favorable prior period reserve development, a $36.6 million decrease in reportable catastrophes, continued net earned premiums growth within Homeowners, ongoing expense leverage from scale and operating efficiencies, and lower catastrophe reinsurance premiums, including impacts from changing the timing of program placement in this initial year of transition to a single placement date.

Current wording

Adjusted EBITDA increased $130.4 million, or 58%, to $353.4 million for Six Months 2024 from $223.0 million for Six Months 2023, mainly due to continued growth from higher policies in-force, average insured values and rates within Homeowners and $14.3 million of favorable year-over-year net impact to non-catastrophe prior year reserve development. Six Months 2024 had $46.6 million of favorable non-catastrophe prior year reserve development compared to $32.3 million in Six Months 2023. The increase in Adjusted EBITDA was also driven by ongoing expense leverage from scale and operating efficiencies, lower catastrophe reinsurance premiums, including impacts from changing the timing of program placement in this initial year of transition to a single placement date, and higher net investment income.

Previous wording

Total revenues increased $74.2 million, or 14%, to $600.7 million for First Quarter 2024 from $526.5 million for First Quarter 2023. Net earned premiums increased $65.6 million, or 14%, primarily driven by Homeowners from higher lender-placed average insured values and policies in force, as well as higher premium rates primarily to address increased claims severity, and lower catastrophe reinsurance premiums, including impacts from the changes described above. The increase was partially offset by exits from certain international markets. Net investment income increased $7.3 million, or 34%, primarily due to higher yields on fixed maturity securities, cash and cash equivalents and short-term investments. Fees and other income increased $1.3 million, or 4%, mainly driven by an increase in Renters and Other.

Current wording

Total revenues increased $175.9 million, or 16%, to $1.26 billion for Six Months 2024 from $1.09 billion for Six Months 2023. Net earned premiums increased $141.5 million, or 14%, primarily driven by Homeowners from higher lender-placed policies in-force and average insured values, as well as higher premium rates primarily to address increased claims severity, partially offset by exits from certain international markets. Fees and other income increased $22.4 million, or 36%, driven by the reclassification described above. Net investment income increased $12.0 million, or 26%, primarily due to higher yields on fixed maturity securities, cash and cash equivalents and short-term investments.

Previous wording

Total benefits, losses and expenses decreased $49.9 million, or 11%, to $408.2 million for First Quarter 2024 from $458.1 million for First Quarter 2023. Policyholder benefits decreased $58.6 million, or 23%, primarily due to lower reportable catastrophe losses, lower non-catastrophe losses, including the impact from favorable prior period reserve developments and lower severity. Underwriting, selling, general and administrative expenses increased $8.7 million, or 4%, primarily due to lower reimbursements related to the National Flood Insurance Program due to processing fewer flood claims for Hurricane Ian.

Current wording

Total benefits, losses and expenses increased $45.5 million, or 5%, to $910.8 million for Six Months 2024 from $865.3 million for Six Months 2023. Underwriting, selling, general and administrative expenses increased $32.0 million, or 8%, primarily due to the reclassification described above and lower reimbursements related to the National Flood Insurance Program due to processing fewer flood claims for Hurricane Ian. Policyholder benefits increased $13.5 million, or 3%, primarily due to higher non-catastrophe losses from exposure growth, partially offset by the favorable year-over-year net impact to non-catastrophe prior year reserve development and lower reportable catastrophe losses.

Previous wording

Total revenues increased $1.2 million, or 26%, to $5.8 million for First Quarter 2024 from $4.6 million for First Quarter 2023, primarily driven by an increase in net investment income of $1.1 million, or 24%, mostly due to higher yields and asset balances for fixed maturity securities.

Current wording

Total revenues increased $3.4 million, or 89%, to $7.2 million for Second Quarter 2024 from $3.8 million for Second Quarter 2023, primarily driven by an increase in net investment income of $3.3 million, or 87%, mostly due to higher yields and asset balances in fixed maturity securities.

Previous wording

Adjusted EBITDA was $(29.5) million for First Quarter 2024 compared to $(24.4) million for First Quarter 2023. The change in results was primarily due to higher third-party consulting and employee-related expenses to support enterprise growth initiatives, partially offset by higher net investment income.

Current wording

Adjusted EBITDA was $(56.7) million for Six Months 2024 compared to $(52.9) million for Six Months 2023. The change in results was primarily due to higher third-party consulting expenses to support enterprise growth initiatives and employee-related expenses, partially offset by higher net investment income.

Previous wording

We had total investments of $8.47 billion and $8.22 billion as of March 31, 2024 and December 31, 2023, respectively. Net unrealized losses on our fixed maturity securities portfolio increased by $23.5 million during First Quarter 2024, from $380.3 million as of December 31, 2023 to a net unrealized loss of $403.8 million as of March 31, 2024, primarily due to an increase in Treasury yields.

Current wording

We had total investments of $8.52 billion and $8.22 billion as of June 30, 2024 and December 31, 2023, respectively. Net unrealized losses on our fixed maturity securities portfolio increased by $55.3 million during Six Months 2024, from $380.3 million as of December 31, 2023 to a net unrealized loss of $435.6 million as of June 30, 2024, primarily due to an increase in Treasury yields.

Previous wording

Net investment income increased $21.5 million, or 20%, to $126.7 million for First Quarter 2024 from $105.2 million for First Quarter 2023. The increase was primarily driven by higher yields and assets in fixed maturity securities, cash and cash equivalents and short-term investments. In addition, there was increased income in other investments primarily from the sale of a real estate joint venture.

Current wording

Net investment income increased $33.3 million, or 15%, to $251.4 million for Six Months 2024 from $218.1 million for Six Months 2023. The increase was primarily driven by higher yields and asset balances in fixed maturity securities, cash and cash equivalents and short-term investments.

Previous wording

We consolidated our main reinsurance purchases into a single placement date of April 2024. Coverage was placed with more than 40 reinsurers that are all rated A- or better by A.M. Best. As of March 31, 2024, 2024 reinsurance premiums for the total program are estimated to be $190.2 million pre-tax compared to $207.2 million pre-tax for 2023, reflecting impacts from changing the timing of program placement in this initial year of transition to a single placement date, as well as favorable underlying rates from improved reinsurance market conditions. Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events.

Current wording

We consolidated our main reinsurance purchases into a single placement date of April 2024. Coverage was placed with more than 40 reinsurers that are all rated A- or better by A.M. Best. 2024 reinsurance premiums for the total program are estimated to be $188.1 million pre-tax, as of June 30, 2024, compared to $207.2 million pre-tax for 2023, reflecting impacts from changing the timing of program placement in this initial year of transition to a single placement date, as well as favorable underlying rates from improved reinsurance market conditions. Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events.

Previous wording

The U.S. per-occurrence catastrophe coverage includes a main reinsurance program providing $1.48 billion of coverage in excess of a $150.0 million retention for a first event. Layers 1 through 6 of the program allow for one automatic reinstatement. Layer 7, which includes $100.0 million of coverage, will be placed in June 2024. When combined with the Florida Hurricane Catastrophe Fund, the U.S. program protects against gross Florida losses of up to approximately $1.69 billion, in excess of retention.

Current wording

The U.S. per-occurrence catastrophe coverage includes a main reinsurance program providing $1.48 billion of coverage in excess of a $150.0 million retention for a first event. Layers 1 through 7 of the program allow for one automatic reinstatement. When combined with the Florida Hurricane Catastrophe Fund, the U.S. program protects against gross Florida losses of up to approximately $1.69 billion, in excess of retention.

Previous wording

During third quarter 2023, we submitted an agreement to sell our Miami, Florida office (the “Agreement”) to a potential acquiror, which is subject to ongoing review, approval, execution and other conditions. If the transaction is consummated pursuant to the terms of the Agreement, we expect to record a gain above the current carrying value of $46.0 million as of March 31, 2024. We do not anticipate that the gain will impact our capital deployment priorities. The entry into a definitive agreement and the consummation of the transaction are subject to significant uncertainty. There can be no assurance that a definitive agreement will be executed or that any transaction will be approved or consummated.

Current wording

During third quarter 2023, we submitted an agreement to sell our Miami, Florida property to a potential acquiror, who subsequently withdrew in Second Quarter 2024. We intend to sell the property and, based on current market conditions and interest from multiple potential bidders, we expect to record a gain, if the property is sold, above the current carrying value of $46.0 million as of June 30, 2024. We do not anticipate that any such gain will impact our capital deployment priorities. There can be no assurance that a transaction will be entered into or consummated.

Previous wording

As of March 31, 2024, we had approximately $622.3 million in holding company liquidity, which was $397.3 million above our targeted minimum level of $225.0 million. The target minimum level of holding company liquidity, which can be used for unforeseen capital needs at our subsidiaries or liquidity needs at the holding company, is calibrated based on approximately one year of corporate operating losses and interest expenses. We use the term “holding company liquidity” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc. (out of a total of $711.9 million as of March 31, 2024) which we are not otherwise holding for a specific purpose as of the balance sheet date. We can use such assets for stockholder dividends, stock repurchases, acquisitions and other corporate purposes.

Current wording

As of June 30, 2024, we had approximately $734.7 million in holding company liquidity, which was $509.7 million above our targeted minimum level of $225.0 million. The target minimum level of holding company liquidity, which can be used for unforeseen capital needs at our subsidiaries or liquidity needs at the holding company, is calibrated based on approximately one year of corporate operating losses and interest expenses. We use the term “holding company liquidity” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc. (out of a total of $826.2 million as of June 30, 2024) which we are not otherwise holding for a specific purpose as of the balance sheet date. We can use such assets for stockholder dividends, stock repurchases, acquisitions and other corporate purposes.

Previous wording

Dividends or returns of capital paid by our subsidiaries to the holding company, net of infusions of liquid assets and excluding amounts used for or as a result of acquisitions or received from dispositions, were $253.5 million and $772.6 million for First Quarter 2024 and Twelve Months 2023, respectively. We use these cash inflows primarily to pay holding company operating expenses, to make interest payments on indebtedness, to make dividend payments to our common stockholders, to repurchase our common stock and to fund investments and acquisitions. From time to time, we may also seek to purchase outstanding debt in open market repurchases or privately negotiated transactions.

Current wording

Dividends or returns of capital paid by our subsidiaries to the holding company, net of infusions of liquid assets and excluding amounts used for or as a result of acquisitions or received from dispositions, were $395.1 million and $772.6 million for Six Months 2024 and Twelve Months 2023, respectively. We use these cash inflows primarily to pay holding company operating expenses, to make interest payments on indebtedness, to make dividend payments to our common stockholders, to repurchase our common stock and to fund investments and acquisitions. From time to time, we may also seek to purchase outstanding debt in open market repurchases or privately negotiated transactions.

Previous wording

During First Quarter 2024, we made common stock repurchases and paid common stock dividends of $77.3 million. We paid dividends of $0.72 per common share on March 25, 2024 to stockholders of record as of February 5, 2024. Any determination to pay future dividends will be at the discretion of the Board and will be dependent upon various factors, including: our subsidiaries’ payments of dividends and other statutorily permissible payments to us; our results of operations and cash flows; our financial condition and capital requirements; general business conditions and growth prospects; any legal, tax, regulatory and contractual restrictions on the payment of dividends; and any other factors the Board deems relevant. The Credit Facility (as defined below) also contains limitations on our ability to pay dividends to our stockholders and repurchase capital stock if we are in default, or such dividend payments or repurchases would cause us to be in default, of our obligations thereunder. In addition, if we elect to defer the payment of interest on our 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 or our 5.25% Subordinated Notes due January 2061 (refer to “—Senior and Subordinated Notes” below), we generally may not make payments on or repurchase any shares of our capital stock.

Current wording

During Six Months 2024, we made common stock repurchases and paid common stock dividends of $157.3 million. We paid dividends of $0.72 per common share on June 24, 2024 to stockholders of record as of June 10, 2024. Any determination to pay future dividends will be at the discretion of the Board of Directors (the “Board”) and will be dependent upon various factors, including: our subsidiaries’ payments of dividends and other statutorily permissible payments to us; our results of operations and cash flows; our financial condition and capital requirements; general business conditions and growth prospects; any legal, tax, regulatory and contractual restrictions on the payment of dividends; and any other factors the Board deems relevant. The Credit Facility (as defined below) also contains limitations on our ability to pay dividends to our stockholders and repurchase capital stock if we are in default, or such dividend payments or repurchases would cause us to be in default, of our obligations thereunder. In addition, if we elect to defer the payment of interest on our 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 or our 5.25% Subordinated Notes due January 2061 (refer to “—Senior and Subordinated Notes” below), we generally may not make payments on or repurchase any shares of our capital stock.

Previous wording

During First Quarter 2024, we repurchased 225,406 shares of our outstanding common stock at a cost of $39.9 million, exclusive of commissions. In May 2021, the Board authorized a share repurchase program for up to $900.0 million of our outstanding common stock. In November 2023, the Board authorized an additional share repurchase program for up to $600.0 million of our outstanding common stock. As of March 31, 2024, $634.6 million aggregate cost at purchase remained unused under the current repurchase authorizations. The timing and the amount of future repurchases will depend on various factors, including those listed above.

Current wording

During Six Months 2024, we repurchased 459,682 shares of our outstanding common stock at a cost of $80.0 million, exclusive of commissions. In May 2021, the Board authorized a share repurchase program for up to $900.0 million of our outstanding common stock. In November 2023, the Board authorized an additional share repurchase program for up to $600.0 million of our outstanding common stock. As of June 30, 2024, $594.5 million aggregate cost at purchase remained unused under the November 2023 repurchase authorization. The timing and the amount of future repurchases will depend on various factors, including those listed above.

Previous wording

We made no borrowings under the Credit Facility during First Quarter 2024 and no loans were outstanding as of March 31, 2024.

Current wording

We made no borrowings under the Credit Facility during Six Months 2024 and no loans were outstanding as of June 30, 2024.

Previous wording

We did not use the commercial paper program during First Quarter 2024 and there were no amounts relating to the commercial paper program outstanding as of March 31, 2024. Our subsidiaries do not maintain commercial paper or other borrowing facilities.

Current wording

We did not use the commercial paper program during Six Months 2024 and there were no amounts relating to the commercial paper program outstanding as of June 30, 2024. Our subsidiaries do not maintain commercial paper or other borrowing facilities.

Previous wording

Net cash provided by operating activities was $82.5 million for First Quarter 2024 compared to net cash provided by operating activities of $259.6 million for First Quarter 2023. The change in net operating cash flows was largely attributable to the timing of payments to various vendors for the acquisition of mobile devices used to meet insurance claims or generate profits through sales to third parties, higher net paid claims and an increase in incentive-based payments related to the performance of the Company. This is partially offset by the timing of higher collections of premiums and fees in our mobile business operations.

Current wording

Net cash provided by operating activities was $793.4 million for Six Months 2024 compared to net cash provided by operating activities of $445.0 million for Six Months 2023. The change in net operating cash flows was largely attributable to the timing of higher collections of premiums and fees in our mobile business and the timing of tax payments, as we received a refund in 2024 related to prior year tax returns as compared to a cash payment in 2023. This was partially offset by the timing of payments to various vendors for the acquisition of mobile devices used to meet insurance claims or generate profits through sales to third parties, higher net paid claims and an increase in incentive-based payments to employees.

Previous wording

Net cash used in investing activities was $328.2 million for First Quarter 2024 compared to net cash used in investing activities of $229.4 million for First Quarter 2023. The change in net investing cash flows was primarily driven by the investment of net cash provided by operating activities and the reinvestment of proceeds from sales of maturities of investments in higher yielding fixed maturity securities during the period. Also contributing to the change was an increase in sales of short-term investments due to the timing of working capital needs.

Current wording

Net cash used in investing activities was $521.6 million for Six Months 2024 compared to net cash used in investing activities of $483.8 million for Six Months 2023. The change in net investing cash flows was primarily driven by the investment of net cash provided by operating activities and the reinvestment of proceeds from sales of maturities of investments in higher yielding fixed maturity securities during the period. Also contributing to the change was a decrease in sales of short-term investments due to the timing of working capital needs.

Previous wording

Net cash used in financing activities was $96.2 million for First Quarter 2024 compared to net cash used in financing activities of $43.0 million for First Quarter 2023. The change in net financing cash flows was primarily due to higher share repurchases for Three Months 2024.

Current wording

Net cash used in financing activities was $177.0 million for Six Months 2024 compared to net cash used in financing activities of $100.4 million for Six Months 2023. The change in net financing cash flows was primarily due to higher share repurchases for Six Months 2024.