ASSURANT, INC.

9. Reserves

Reserve Roll Forward

The following table provides a roll forward of the Company’s beginning and ending claims and benefits payable balances. Claims and benefits payable is the liability for unpaid loss and loss adjustment expenses and is comprised of case and incurred but not reported (“IBNR”) reserves.

Since unpaid loss and loss adjustment expenses are estimates, the Company’s actual losses incurred may be more or less than the Company’s previously developed estimates, which is referred to as either unfavorable or favorable development, respectively.

The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented.

(1)Includes reinsurance recoverables and claims and benefits payable of $256.0 million and $905.6 million as of September 30, 2025 and 2024, respectively, which was ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program.

The Company experienced net favorable loss development of $126.2 million and $98.9 million for the nine months ended September 30, 2025 and 2024, respectively, as presented in the roll forward table above.

Global Lifestyle contributed $40.6 million and $16.7 million in net favorable loss development for the nine months ended September 30, 2025 and 2024, respectively. The net favorable loss development in both periods was attributable to nearly all lines of business in Global Lifestyle across most of the Company’s regions with a concentration on more recent accident years and based on emerging evaluations regarding loss experience. Connected Living contributed $23.4 million of net favorable development, of which $10.6 million was from mobile, $9.9 million was from extended service contracts and $2.9 million was from credit and other insurance. For mobile, the favorable development was primarily attributable to reserve releases as a new client’s actual loss experience replaced initial pricing assumptions. For extended service contracts, reserve releases and favorable development are primarily attributable to fewer claims as inforce contract counts decrease slightly and lower severity from new pricing agreements with servicers. For credit and other insurance, the favorable development was primarily attributable to administrative closure of claims with no offsetting settlements. Global Automotive contributed $17.2 million of net favorable development, primarily attributable to favorability in the frequency assumptions in the U.S. service contract products. For the nine months ended September 30, 2024, the favorable development was also primarily from Connected Living and due to similar drivers. Many of these contracts and products contain retrospective commission (profit sharing) provisions that would result in offsetting increases or decreases in expense dependent on if the development was favorable or unfavorable.

Global Housing contributed $86.6 million and $87.1 million of net favorable loss development for the nine months ended September 30, 2025 and 2024, respectively. The net favorable loss development for the nine months ended September 30, 2025 consisted of $91.0 million of net favorable non-catastrophe development and $4.4 million of net unfavorable development from prior catastrophe events. The net favorable non-catastrophe development was driven by $80.3 million from lender-placed hazard due to easing inflation and lower frequency as observed by favorable actual loss emergence data compared to prior estimates. The net favorable loss development for the nine months ended September 30, 2024 was primarily attributable to favorable frequency, easing inflation and legislative reform changes in Florida.

The sharing economy and small commercial businesses, reported within non-core operations, contributed $3.0 million and $11.6 million in net unfavorable loss development during the nine months ended September 30, 2025 and 2024, respectively. The $3.0 million in net unfavorable loss development was primarily attributable to sharing economy due to the deterioration in the anticipated portion and amount of claims exceeding the per policy deductible. The net unfavorable loss development for the nine months ended September 30, 2024 was primarily attributable to more newly reported claims than expected and an increase in the portion and amount of claims anticipated to exceed the per policy deducible.

All others contributed $2.0 million and $6.7 million of net favorable loss development for the nine months ended September 30, 2025 and 2024 respectively.

Long-Duration Contracts

A remeasurement of the ending reporting period future policy benefits and expenses reserve is calculated using the current upper medium grade fixed-income corporate bond instrument yield as of the consolidated balance sheet ending period (the “current discount rate”). The current discount rate used is an externally published U.S. corporate A index weighted average spot rate that is updated quarterly and effectively matches the duration of the expected cash flow streams of the long-term care reserves. The difference between the ending period future policy benefits and expenses reserve measured using the original discount rate and the future policy benefits and expenses reserve measured using the current discount rate is recorded in accumulated other comprehensive income (“AOCI”) in the Company’s consolidated statements of comprehensive income.

The long-term care insurance contracts are fully reinsured and there is no impact to consolidated stockholders’ equity or net income as the reserves are fully reinsured.

The following table presents the balances and changes in the long-term care future policy benefits and expenses reserve:

(1)Experience variance includes adverse development resulting from the allocation of the premium deficiency reserve to the cohort level for issue years where net premiums exceed gross premiums.

The following table presents a reconciliation of the long-term care net future policy benefits and expenses to the future policy benefits and expenses reserve in the consolidated balance sheet:

The following table presents the amount of undiscounted expected future benefit payments and expected gross premiums for the long-term care insurance contracts:

The following table presents the amount of long-term care revenue and interest recognized in the consolidated statements of operations:

The following table presents the weighted-average interest rate for long-term care insurance contracts: