Annual Report and Form 10-K Financial Highlights 2012 2013 2014 2015 2016 Total revenues $8,508 $9,048 $10,382 $10,325 $7,532 Net earned premiums, fees & other $7,712 $8,347 $9,666 $9,654 $6,430 Net income $484 $489 $471 $142 $565 Net operating income(1) $327 $415 $455 $399 $277 Annual operating return on average equity, 9.7% 11.8% 12.6% 11.5% 7.7% excluding AOCI(2) Net operating income per diluted share(3) $3.84 $5.35 $6.22 $5.78 $4.47 Corporate capital $780 $690 $560 $460 $775 (U.S. dollars in millions except per diluted share amounts) 1,QFOXGHVUHSRUWDEOHFDWDVWURSKHORVVHV3OHDVHVHHIRRWQRWHRQSDJHRIWKLVUHSRUWIRUPRUHLQIRUPDWLRQRQWKLVQRQ*$$3ÀQDQFLDOPHDVXUH and a reconciliation of net operating income to its most comparable GAAP measure. 2 3OHDVHVHHIRRWQRWHRQSDJHRIWKLVUHSRUWIRUPRUHLQIRUPD WLRQRQWKLVQRQ*$$3ÀQDQFLDOPHDVXUHDQGDUHFRQFLOLDWLRQRIDQQXDORSHUDWLQJ return on average equity, excluding AOCI, to its most comparable GAAP measure. 3 3OHDVHVHHIRRWQRWHRQSDJHRIWKLVUHSRUWIRUPRUHLQIRUP DWLRQRQWKLVQRQ*$$3ÀQDQFLDOPHDVXUHDQGDUHFRQFLOLDWLRQRIQHWRSHUDWLQJ income per diluted share to its most comparable GAAP measure. Cash Flow Generation Capital Deployment Common Stock Dividends 2012–2016 Segment Dividends(1) 2012–2016 & Share Repurchases (in millions) 2012-2016 (in millions) $1,666 21% 51% $995 18% $1,351 (2) 10% $870 $472 $472 $379 Share Repurchases $296 Common Stock Dividends $623 $403 $398 $582 Acquisitions $285 $454 $218 $315 Capital Infusions $175 $69 $74 $78 $94 $12 5 2012 20132014 2015 2016 2012 2013 2014 2015 2016 Share Repurchases Dividends 1 Consists of dividends from operating subsidiaries to the holding company, net of infusions, excluding acquisitions and divestitures. 2 2016 includes proceeds and capital releases IURP WKH $VVXUDQW (PSOR\HH %HQHÀWV VDOH DQG dividends from Assurant Health wind-down. A Message to Our Shareholders Assurant continues to evolve to a company “ ZLWKPRUHGLYHUVLÀHGUHYHQXHVWUHDPVDQG an increasing mix of fee-based, capital-light offerings that position us to expand revenues “and grow earnings over the long term. Dear Shareholder, Every day around the world, our 15,000 Assurant employees demonstrate an unwavering commitment to helping our customers protect what matters most. This dedication and drive makes us a premier global provider of risk management solutions and a company that creates pioneering innovations for the future. Organizational Transformation 2016 was a transitional year at Assurant as we completed our portfolio realignment and launched a new operating model to make us more agile and HIÀFLHQWLQWKH\HDUVDKHDG:HDUHDOUHDG\VHHLQJEHQHÀWVIURPWKHPXOWL\HDU transformation we announced back in 2015 and anticipate even better performance Alan B. Colberg to come. President and CEO Assurant Among our top strategic actions in 2016 were successfully completing the divestiture RI$VVXUDQW (PSOR\HH %HQHÀWV DQG VXEVWDQWLDOO\ ZLQGLQJ GRZQ RXU$VVXUDQW +HDOWK operations. Exiting those businesses was a critical element of our transformation and UHSUHVHQWVDPDMRUVWHSIRUZDUGLQFUHDWLQJDPRUHIRFXVHGDQGPRUHHIÀFLHQWFRPSDQ\ for the future. Another important step in our multi-year transformation was the implementation of an enterprise operating model to support our focus on Housing and Lifestyle as core Protecting markets. The new model established global business units as well as centers of What H[FHOOHQFHWKDWUHÁHFWRXUHQWHUSULVHPLQGVHW Matters Most Our operating model was built on three guiding principles. First, we wanted to ensure our operating structure is proactive, agile and fosters innovation to meet customer needs and grow our business. Second, the operating model was designed to capture our “best of the best” in terms of practices, processes and people around the world. 7KLUGZHGHYLVHGWKHPRGHOWROHYHUDJHRXUHQWHUSULVHVFDOHDQGHIÀFLHQF\WRFUHDWH competitive advantage across the Housing and Lifestyle markets. Your home To help oversee this operating model, we established a new role of Chief Operating 2IÀFHUWRFRRUGLQDWHRXUZRUOGZLGHEXVLQHVVVWUDWHJLHVDQGRSHUDWLRQVDVZHPRYHG to a global approach for our support functions. Importantly, we also established two QHZHQWHUSULVHUROHV³D&KLHI7HFKQRORJ\2IÀFHUDQGD&KLHI5LVN2IÀFHU³ERWK JOREDOOHDGHUVKLSSRVLWLRQVFULWLFDOWRGULYLQJSURÀWDEOHJURZWK I am proud of the tremendous progress we made in establishing an enterprise mindset to better connect the employees and businesses within our organization and align WKHP ZLWK D XQLÀHG VWUDWHJLF YLVLRQ 7KLV PLQGVHW HQKDQFHV FXVWRPHU VHUYLFH DQG Your purchases contributes to improved business development, both geographically and through new product and service offerings. DOVRZDVDWUDQVLWLRQDO\HDUDVLWUHODWHVWRÀQDQFLDOSHUIRUPDQFH:HFRQWLQXHG to manage expected declines due to lender-placed normalization and other legacy $VVXUDQW$QQXDO5HSRUW| 1 EXVLQHVVHVHYHQDVZHSRVLWLRQHGRXUVHOYHVIRUSURÀWDEOHJURZWKLQRXUWDUJHWHGDUHDVRIFRQQHFWHGOLYLQJ multifamily housing and mortgage solutions. Assurant’s 2016 revenue from Global Housing, Global Lifestyle and Global Preneed was $6.2 billion, down modestly due to declines in net earned premiums, while fee income increased from expanded service offerings in mobile and mortgage solutions. Net operating income was down to $277 million, primarily as a result of expected lender-placed normalization as well as catastrophe losses. :LWKWKHVHWUDQVIRUPDWLRQDOPLOHVWRQHV$VVXUDQWFRQWLQXHVWRHYROYHWRDFRPSDQ\ZLWKPRUHGLYHUVLÀHG revenue streams and an increasing mix of fee-based, capital-light offerings that position us to expand UHYHQXHVDQGJURZHDUQLQJVRYHUWKHORQJWHUP$WWKHVDPHWLPHZHH[SHFWWRFRQWLQXHJHQHUDWLQJVLJQLÀFDQW FDVK ÁRZ WKDW DOORZV XV WR EXLOG RXU EXVLQHVV LQYHVW LQ RXU WDOHQWHG ZRUNIRUFH DQG UHWXUQ FDSLWDO WR shareholders. Market Focus Sharpening our market focus is crucial to building a stronger Assurant, now and in the years to come. But it’s only the starting point. At our core, we must continue to prioritize our commitment to being a customer- driven organization that truly delivers on our mission of protecting what matters most to people — including the homes where they live and the goods that they buy. Our emphasis on the Housing and Lifestyle markets concentrates the power of our consumer research and insights, along with the vast expertise of our employees, on the product and service offerings that best meet FXVWRPHUV·QHHGV:HUHPDLQGHGLFDWHGWRLQQRYDWLQJWUXO\WUDQVIRUPDWLYHFXVWRPHUVROXWLRQVE\XQFRYHULQJ still more insights across Housing and Lifestyle, leading to enhanced customer satisfaction and retention. :HUHFRJQL]HWKDWJURZWKLQWDUJHWHGDUHDVVXFKDVRXUPRELOHEXVLQHVVLVDFRUQHUVWRQHRIRXUIXWXUH performance. In 2016, we made selective acquisitions of companies that strengthen our business value chain while also investing in and partnering with disruptive start-ups and other businesses that can add even more game-changing innovation to future service offerings. In Housing, we continued to invest in our lender-placed insurance platform to enhance our strong customer service offering. Strategic acquisitions in the manufactured housing and mortgage solutions markets strengthened our business. :H·UHZRUNLQJFRQVLVWHQWO\WRJOREDOL]HRXU+RXVLQJDQG/LIHVW\OHRIIHULQJVDQGSUHVHQFH7KLVLVZKDWRXU clients expect. As they increase their own global footprints, they need and want partners that can support them around the world. In addition, our increasing global reach helps drive fresh customer insights and spur innovations to give Assurant a sustainable competitive advantage. Culture of Outperformance Looking to the future, we are placing special emphasis on continued outperformance — for our customers including the end-consumer, our employees and our shareholders. To fully realize our vision, we will live our new operating model, working to ensure we capture every RSSRUWXQLW\WRFUHDWHYDOXHWKURXJKFROODERUDWLRQLQVLJKWVDQGH[SHUWLVH:HZLOOUHQHZRXUGHWHUPLQDWLRQ WRGHOLYHUSURÀWDEOHJURZWKDQGPDUJLQH[SDQVLRQRYHUWKHORQJWHUP$QGZHZLOOGRDOORIWKLVZLWKDQ enterprise mindset and a dedication to attracting and retaining talent by making our company a great place to work. In addition, we will continue deploying our capital to maximize shareholder value. That includes investing in strategic acquisitions and investing to support organic growth in our existing businesses while also continuing to return capital to shareholders. Overall, we deployed $210 million through strategic acquisitions, including 2 | $VVXUDQW$QQXDO5HSRUW Green Tree Insurance Agency and American Title, to strengthen our offerings, capabilities and distribution last year in Housing and Lifestyle. Look for Assurant to remain an active but selective buyer — at the right price — of companies that add value to our businesses. $WWKHVDPHWLPHZHUHPDLQÀUPO\FRPPLWWHGWRGHOLYHULQJVKDUHKROGHUYDOXH Last year, as part of our disciplined capital deployment strategy, Assurant returned nearly $1 billion to shareholders through dividends and share repurchases. This represents substantial progress toward our goal of $ returning to shareholders a total of $1.5 billion — the proceeds from the VDOHRI(PSOR\HH%HQHÀWVDQGWKHGLYLGHQGVIURPWKH+HDOWKZLQGGRZQ³ 1.5 B by the end of 2017. In addition, we announced a 6 percent increase in the We intend to return a total Assurant dividend to a new quarterly payout of $0.53 per share, continuing $1.5 billion to shareholders our tradition since our 2004 IPO of regular dividend increases. by the end of 2017 while Opportunities Ahead also funding meaningful :HORRNIRUZDUGZLWKFRQÀGHQFHDQGDQWLFLSDWLRQWRWKHPDQ\RSSRUWXQLWLHVWKDW investments to build our lie before us in 2017 and beyond. global housing