Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Hierarchy for Assets and Liabilities

The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015. The amounts presented below for Other investments, Cash equivalents, Other assets, Assets and Liabilities held in separate accounts and Other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan, American Security Insurance Company Investment Plan, Assurant Deferred Compensation Plan, modified coinsurance arrangements and other derivatives. Other liabilities are comprised of investments in the Assurant Investment Plan and other derivatives. The fair value amount and the majority of the associated levels presented for Other investments and Assets and Liabilities held in separate accounts are received directly from third parties.



	March 31, 2016
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies and authorities	$	177,982	$	—		$	177,982		$	—
State, municipalities and political subdivisions	608,919		—			608,919			—
Foreign governments	575,343		842			574,501			—
Asset-backed	4,011		—			4,011			—
Commercial mortgage-backed	21,124		—			20,970			154
Residential mortgage-backed	941,661		—			941,661			—
Corporate	6,710,707		—			6,644,815			65,892
Equity securities:
Common stocks	19,173		18,490			683			—
Non-redeemable preferred stocks	384,529		—			382,169			2,360
Short-term investments	449,691		354,391		b	95,300		c	—
Other investments	283,059		65,490		a	216,017		c	1,552		d
Cash equivalents	1,564,470		1,542,075		b	22,395		c	—
Other assets	1,838		—			1,477		e	361		e
Assets held in separate accounts	1,672,325		1,510,461		a	161,864		c	—
Total financial assets	$	13,414,832	$	3,491,749		$	9,852,764		$	70,319

Financial Liabilities
Other liabilities	$	93,114	$	65,490	a	$	32	e	$	27,592	e
Liabilities related to separate accounts	1,672,325		1,510,461		a	161,864		c	—
Total financial liabilities	$	1,765,439	$	1,575,951		$	161,896		$	27,592



	December 31, 2015
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies and authorities	$	154,035	$	—		$	154,035		$	—
State, municipalities and political subdivisions	695,630		—			695,630			—
Foreign governments	562,250		944			561,306			—
Asset-backed	4,662		—			4,662			—
Commercial mortgage-backed	22,521		—			22,317			204
Residential mortgage-backed	998,514		—			998,514			—
Corporate	7,777,716		—			7,714,570			63,146
Equity securities:
Common stocks	19,664		18,981			683			—
Non-redeemable preferred stocks	480,393		—			478,143			2,250
Short-term investments	508,950		453,335		b	55,615		c	—
Other investments	253,708		62,076		a	189,407		c	2,225		d
Cash equivalents	908,936		907,248		b	1,688		c	—
Other assets	1,320		—			886		e	434		e
Assets held in separate accounts	1,750,556		1,570,000		a	180,556		c	—
Total financial assets	$	14,138,855	$	3,012,584		$	11,058,012		$	68,259

Financial Liabilities
Other liabilities	$	89,765	$	62,076	a	$	6	e	$	27,683	e
Liabilities related to separate accounts	1,750,556		1,570,000		a	180,556		c	—
Total financial liabilities	$	1,840,321	$	1,632,076		$	180,562		$	27,683


a.	Mainly includes mutual funds.


b.	Mainly includes money market funds.


c.	Mainly includes fixed maturity securities.


d.	Mainly includes fixed maturity securities and other derivatives.


e.	Mainly includes other derivatives.

Change in Balance Sheet Carrying Value for Level 3 Assets and Liabilities

The following tables summarize the change in balance sheet carrying value associated with Level 3 financial assets and liabilities carried at fair value during the three months ended March 31, 2016 and 2015:



	Three Months Ended March 31, 2016
	Balance, beginning of period			Total gains (losses) (realized/ unrealized) included in earnings (1)			Net unrealized (losses) gains included in other comprehensive income (2)			Purchases		Sales			Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
Commercial mortgage-backed	$	204		$	—		$	(1	)	$	—	$	(49	)	$	—		$	154
Corporate	63,146			145			51			8,100		(719		)	(4,831		)	65,892
Equity Securities
Non-redeemable preferred stocks	2,250			—			110			—		—			—			2,360
Other investments	2,225			(636		)	(11		)	—		(26		)	—			1,552
Other assets	434			(73		)	—			—		—			—			361
Financial Liabilities
Other liabilities	(27,683		)	91			—			—		—			—			(27,592		)
Total level 3 assets and liabilities	$	40,576		$	(473	)	$	149		$	8,100	$	(794	)	$	(4,831	)	$	42,727



	Three Months Ended March 31, 2015
	Balance, beginning of period			Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized (losses) gains included in other comprehensive income (2)			Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
Commercial mortgage-backed	$	403		$	—		$	(3	)	$	(46	)	$	—	$	—		$	354
Residential mortgage-backed	4,645			—			—			—			—		(4,645		)	—
Corporate	104,275			(8		)	880			(2,155		)	2,130		(4,132		)	100,990
Equity Securities
Non-redeemable preferred stocks	2,000			—			60			—			—		—			2,060
Other investments	2,121			128			(4		)	(21		)	236		—			2,460
Other assets	807			137			—			—			—		—			944
Financial Liabilities
Other liabilities	(25,233		)	(948		)	—			—			—		—			(26,181		)
Total level 3 assets and liabilities	$	89,018		$	(691	)	$	933		$	(2,222	)	$	2,366	$	(8,777	)	$	80,627


(1)	Included as part of net realized gains on investments in the consolidated statement of operations.


(2)	Included as part of change in unrealized gains on securities in the consolidated statement of comprehensive income.


(3)	Transfers are primarily attributable to changes in the availability of observable market information and re-evaluation of the observability of pricing inputs.

Carrying Value and Fair Value of the Financial Instruments that are Not recognized or are Not Carried at Fair Value

The following tables disclose the carrying value, fair value amount and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets:



	March 31, 2016
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	872,196	$	920,283	$	—	$	—	$	920,283
Policy loans	41,124		41,124		41,124		—		—
Other investments	28,356		28,356		—		—		28,356
Total financial assets	$	941,676	$	989,763	$	41,124	$	—	$	948,639
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	675,539	$	684,546	$	—	$	—	$	684,546
Funds withheld under reinsurance	101,400		101,400		101,400		—		—
Debt	1,414,704		1,519,466		—		1,519,466		—
Total financial liabilities	$	2,191,643	$	2,305,412	$	101,400	$	1,519,466	$	684,546

	December 31, 2015
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	1,151,256	$	1,201,806	$	—	$	—	$	1,201,806
Policy loans	43,858		43,858		43,858		—		—
Other investments	27,534		27,534		—		—		27,534
Total financial assets	$	1,222,648	$	1,273,198	$	43,858	$	—	$	1,229,340
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	666,068	$	676,586	$	—	$	—	$	676,586
Funds withheld under reinsurance	94,417		94,417		94,417		—		—
Debt	1,164,657		1,250,602		—		1,250,602		—
Total financial liabilities	$	1,925,142	$	2,021,605	$	94,417	$	1,250,602	$	676,586


(1)	Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the table above.