Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 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 June 30, 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.



	June 30, 2016
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities	$	172,998	$	—		$	172,998		$	—
State, municipalities and political subdivisions	575,073		—			572,073			3,000
Foreign governments	596,682		932			595,750			—
Asset-backed	3,901		—			3,901			—
Commercial mortgage-backed	44,638		—			13,629			31,009
Residential mortgage-backed	947,679		—			947,679			—
U.S. corporate	5,600,500		—			5,535,793			64,707
Foreign corporate	1,802,728		—			1,774,085			28,643
Equity securities:
Common stocks	20,122		19,438			684			—
Non-redeemable preferred stocks	414,384		—			412,084			2,300
Short-term investments	498,281		223,017		b	275,264		c	—
Other investments	287,103		66,495		a	219,751		c	857		d
Cash equivalents	726,424		699,356		b	27,068		c	—
Other assets	8,251		—			7,954		e	297		e
Assets held in separate accounts	1,668,611		1,488,102		a	180,509		c	—
Total financial assets	$	13,367,375	$	2,497,340		$	10,739,222		$	130,813

Financial Liabilities
Other liabilities	$	92,499	$	66,495	a	$	26	e	$	25,978	e
Liabilities related to separate accounts	1,668,611		1,488,102		a	180,509		c	—
Total financial liabilities	$	1,761,110	$	1,554,597		$	180,535		$	25,978



	December 31, 2015
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
U.S. 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			—
U.S. corporate	5,869,693		—			5,835,189			34,504
Foreign corporate	1,908,023		—			1,879,381			28,642
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 and six months ended June 30, 2016 and 2015:



	Three Months Ended June 30, 2016
	Balance, beginning of period			Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized gains (losses) included in other comprehensive income (2)			Purchases		Sales			Transfers in (3)		Balance, end of period
Financial Assets
Fixed Maturity Securities
States, municipalities and political subdivisions	$	—		$	—		$	—		$	3,600	$	(600	)	$	—	$	3,000
Commercial mortgage-backed	154			(291		)	374			30,822		(50		)	—		31,009
U.S. corporate	37,400			146			1,169			14,516		(930		)	12,406		64,707
Foreign corporate	28,492			18			854			—		(721		)			28,643
Equity Securities
Non-redeemable preferred stocks	2,360			—			(60		)	—		—			—		2,300
Other investments	1,552			(663		)	(9		)	—		(23		)	—		857
Other assets	361			(64		)	—			—		—			—		297
Financial Liabilities
Other liabilities	(27,592		)	1,614			—			—		—			—		(25,978		)
Total level 3 assets and liabilities	$	42,727		$	760		$	2,328		$	48,938	$	(2,324	)	$	12,406	$	104,835



	Three Months Ended June 30, 2015
	Balance, beginning of period			Total (losses) gains (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	$	354		$	—		$	(3	)	$	—	$	(47	)	$	—		$	304
U.S. corporate	96,798			(64		)	(1,491		)	6,523		(2,473		)	(52,777		)	46,516
Foreign corporate	4,192			640			(535		)	—		(1,003		)	—			3,294
Equity Securities
Non-redeemable preferred stocks	2,060			—			60			—		—			—			2,120
Other investments	2,460			(33		)	(11		)	—		(35		)	—			2,381
Other assets	944			(156		)	—			—		—			—			788
Financial Liabilities
Other liabilities	(26,181		)	(2,473		)	—			77		—			—			(28,577		)
Total level 3 assets and liabilities	$	80,627		$	(2,086	)	$	(1,980	)	$	6,600	$	(3,558	)	$	(52,777	)	$	26,826



	Six Months Ended June 30, 2016
	Balance, beginning of period			Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized gains (losses) included in other comprehensive income (2)			Purchases		Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
States, municipalities and political subdivisions	$	—		$	—		$	—		$	3,600	$	(600	)	$	—	$	—		$	3,000
Commercial mortgage- backed	204			(291		)	373			30,822		(99		)	—		—			31,009
U.S. corporate	34,504			278			1,380			22,616		(1,646		)	12,406		(4,831		)	64,707
Foreign corporate	28,642			31			694			—		(724		)	—		—			28,643
Equity Securities
Non-redeemable preferred stocks	2,250			—			50			—		—			—		—			2,300
Other investments	2,225			(1,299		)	(20		)	—		(49		)	—		—			857
Other assets	434			(137		)	—			—		—			—		—			297
Financial Liabilities
Other liabilities	(27,683		)	1,705			—			—		—			—		—			(25,978		)
Total level 3 assets and liabilities	$	40,576		$	287		$	2,477		$	57,038	$	(3,118	)	$	12,406	$	(4,831	)	$	104,835



	Six Months Ended June 30, 2015
	Balance, beginning of period			Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized (losses) gains included in other comprehensive income (2)			Purchases		Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
Commercial mortgage- backed	$	403		$	—		$	(6	)	$	—	$	(93	)	$	—	$	—		$	304
Residential mortgage- backed	4,645			—			—			—		—			—		(4,645		)	—
U.S. corporate	100,133			(112		)	(655		)	6,523		(4,594		)	2,130		(56,909		)	46,516
Foreign corporate	4,142			680			(491		)	—		(1,037		)	—		—			3,294
Equity Securities
Non-redeemable preferred stocks	2,000			—			120			—		—			—		—			2,120
Other investments	2,121			95			(15		)	—		(56		)	236		—			2,381
Other assets	807			(19		)	—			—		—			—		—			788
Financial Liabilities
Other liabilities	(25,233		)	(3,421		)	—			77		—			—		—			(28,577		)
Total level 3 assets and liabilities	$	89,018		$	(2,777	)	$	(1,047	)	$	6,600	$	(5,780	)	$	2,366	$	(61,554	)	$	26,826


(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:



	June 30, 2016
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	620,185	$	658,901	$	—	$	—	$	658,901
Policy loans	40,349		40,349		40,349		—		—
Other investments	29,243		29,243		—		—		29,243
Total financial assets	$	689,777	$	728,493	$	40,349	$	—	$	688,144
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	670,445	$	692,037	$	—	$	—	$	692,037
Funds withheld under reinsurance	105,475		105,475		105,475		—		—
Debt	1,165,255		1,302,817		—		1,302,817		—
Total financial liabilities	$	1,941,175	$	2,100,329	$	105,475	$	1,302,817	$	692,037

	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	1,164,656		1,250,602		—		1,250,602		—
Total financial liabilities	$	1,925,141	$	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.