Investor Presentation Investor Presentation First Quarter 2015 First Quarter 2015 Safe Harbor Statement Some of the statements included in this presentation, particularly those anticipating future financial performance business prospects growth and 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. Please see Exhibit 3 of this presentation, which identifies risk factors that could cause our actual results to differ materially from those currently estimated by management, and provides information on where you can find a more detailed discussion of these risk factors in our SEC filings. 2 1
Assurant Investment Highlights Premier provider of specialty protection products and related services ● Market leadership in housing and lifestyle protection products and services products and services Specialty Specialty ● Favorable consumer and macro-trends Focus ● Attractive profitable growth opportunities ● Track record of adapting to changing markets Operational Strategic relationships with market leaders ● Excellence ● Excellence in management of operational risk, insurance risk and administrative complexity ● Strong balance sheet Financial ● Significant free cash flow generation Strength Disciplined capital management ● 3 Assurant’s Specialty Strategy ● Premier provider of specialty protection products and services ● Actively manage portfolio of specialty businesses that are or can be: y g p p y – Market leaders – Outperformers ● Span the breadth of current and evolving distribution channels where consumers go to find specialty protection products ● Outperform by focusing on: – “ Where we play” – market attractiveness Where we play market attractiveness – “How we compete” – intentionally different business models Deliver Top-Quartile Total Shareholder Returns (1) (1) Against peer group consisting of U.S. companies against which we measure performance under the Assurant Long Term Equity Incentive Plan (as described further in our 2014 Proxy Statement). 4 2
Strategic Realignment to Focus on Housing and Lifestyle ● In April 2015, Assurant announced its decision to focus on specialty Housing and Lifestyle protection products and services offered through Assurant Solutions and Specialty Property – “Housing” - protects where people live Housing - protects where people live – “Lifestyle” -protects the consumer goods people purchase and the assets they safeguard Sharper focus will allow Assurant to more consistently generate specialty ● returns – Strong track records of sustained leadership positions and strong cash flow generation – Significant profitable growth opportunities globally as Assurant expands integrated services offerings and leverages core capabilities integrated services offerings and leverages core capabilities ● Given the limited strategic fit of Assurant Health and Employee Benefits in the portfolio: – Assurant is exploring strategic alternatives for Assurant Employee Benefits, including a sale of the segment – Assurant will exit the health insurance market and expects the process to be substantially complete in 2016 (1) (1) See Form 8-K filing dated June 10, 2015 5 Housing and Lifestyle Protection Products and Services Address Consumer Risk Events Assurant Specialty Property Assurant Solutions Housing Products & Services Lifestyle Products & Services ● Lender-placed homeowners and flood ● Connected Living: insurance ● Mobile device protection ● Multi-family housing insurance ● Multi family housing insurance ● Extended service contracts ● Property preservation, appraisal ● Pre-funded funeral insurance management and valuation services ● Credit Insurance Protecting what matters most 6 3
Proven Financial Strength First Quarter 2015 Results Reinforce Strategic Realignment toward Housing and Lifestyle Book Value Per Diluted Share (1) $65.22 For the Three Months ended 3/31/15: $65 ● 3 % $60 growth in net earned premiums $55 10%+ from ongoing Assurant Solutions $50 CAGR and Specialty Property segments $45 $40 ● 42% growth in fee income $35 $30 ● $570 million $ $25 $22.04 $22 04 $25 corporate capital at quarter-end $20 $15 ● $101 million returned in repurchases and $10 dividends during 1Q 2015 $5 (1) Excludes accumulated other comprehensive income (AOCI). 7 Solid Financial Foundation Provides Flexibility Excellence in Risk Solid Balance Sheet Strong Liquidity Management Approximately $570 million Maintain risk buffer for tail $4.6 billion equity (1) corporate capital corporate capital events events Approximately $320 million deployable capital, excluding Multi-faceted catastrophe 20.4% Debt-to-capital ratio (2) $250 million risk buffer reinsurance program $400 million 2.8 ratio of invested assets Conservative investment revolving credit facility to equity (3) portfolio through Sept. 2019 (4) Limited callable liabilities Note: All information is as of March 31, 2015. (1) Excludes AOCI. This is a non-GAAP measure. GAAP equity would include $549 million in AOCI at March 31, 2015. (2) Excludes AOCI. (3) Equals total investments divided by total stockholders’ equity including AOCI. (4) $396 million available as of March 31, 2015. 8 4
Specialty Businesses Generate Significant Cash Flow $6.1B in cash generated from 2004 through 2015 YTD ($ in millions) $900 $819 $ $800 $656 $700 $607 $558 $600 $548 $538 $520 $513 $510 $500 $394 $400 $300 $242 $165 $ $200 $100 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q2015 Note: Primarily consists of gross dividends received from subsidiaries, less interest and other corporate expenses. Excludes proceeds from 2013 debt issuance. 9 Disciplined Capital Deployment Strategy Investing in Housing and Lifestyle and returning capital to shareholders Investing in Organic Growth Cash Flow Deployed 2004 – 2015 YTD (1) ● Select investment in areas that leverage core g capabilities Reinvested in Pursuing Disciplined M&A Businesses Change in 11% Acquisitions Deployable ● Committed to pursuing value-creating 18% Capital 6% M&A deals Returning Capital to Shareholders Dividends ● Prudent returns through dividends and 11% repurchases Maintaining Financial Flexibility ● Diverse sources of cash Share Repurchases ● $400 million revolving credit agreement 54% ● Holding company capital buffer ● Modest leverage ratios (1) Year-to-date as of March 31, 2015. 10 5
Assurant’s Strategic Priorities Adapt Strengthen Grow • Meet expanding M t di • Enhance specialty E h i lt • Grow revenue in G i consumer needs by advantage in each excess of U.S. GDP evolving our niche business portfolio • Generate a more • Develop or acquire new diversified mix of • Provide more capabilities to broaden distributable earnings integrated solutions product and service around risk events offerings • Sustain above average Return on average Return on • Shift resources to • Leverage cross- Equity and growth in profitable growth enterprise resources to Book Value per Share businesses drive operational excellence 11 Align Portfolio With Best Opportunities Highest Profitable Growth Opportunities in Housing and Lifestyle Operating Non-Growth Core Businesses Targeted Growth Segment Segment Businesses Businesses Solutions Service Contracts Mobile Domestic & European Credit Insurance Preneed Run-Off Domestic Retail Specialty Lender-Placed Insurance Multi-Family Housing Manufactured Housing Property Mortgage Solutions Voluntary P&C (1) • Wind down of major medical operations Health • Agreement in principle to sell supplemental & small group self-funded business lines and North Star distribution channel to National General Holdings Corp. Employee • Process to explore strategic alternatives underway including a sale of the segment Benefits (1) Voluntary P&C business sold in January 2015 as part of divestiture of American Reliable Insurance Company. 12 6
Drivers of Shareholder Value Portfolio alignment to focus on best opportunities + Innovation to maintain competitive advantage + Operational excellence + Di Disciplined capital management i li d it l t = Top-Quartile Total Shareholder Returns 13 Appendix Appendix 7
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