Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Hierarchy for Assets and Liabilities

The following table presents the Company’s fair value hierarchy for financial

assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis as of the dates indicated:



	June 30, 2019
	Total		Level 1			Level 2		Level 3
Financial Assets
Investments:
Cash and cash equivalents	$	84.8	$	84.8	(1)	$	—	$	—
Corporate debt securities	1,838.9		—			1,838.9		—
Real estate funds	138.2		—			—		138.2
Total financial assets	$	2,061.9	$	84.8		$	1,838.9	$	138.2

Financial Liabilities
Collateralized loan obligation notes	$	1,616.5	$	—		$	1,616.5	$	—
Total financial liabilities	$	1,616.5	$	—		$	1,616.5	$	—



	December 31, 2018
	Total		Level 1			Level 2		Level 3
Financial Assets
Investments:
Cash and cash equivalents	$	62.6	$	62.6	(1)	$	—	$	—
Corporate debt securities	1,464.2		—			1,464.2		—
Real estate funds	112.0		—			—		112.0
Total financial assets	$	1,638.8	$	62.6		$	1,464.2	$	112.0

Financial Liabilities
Collateralized loan obligation notes	$	1,316.7	$	—		$	1,316.7	$	—
Total financial liabilities	$	1,316.7	$	—		$	1,316.7	$	—

(1)

Amounts consist of money market funds.

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, 2019 and December 31, 2018. The amounts presented below for short-term investments, other investments, cash equivalents, other receivables, other assets, assets held in and liabilities related to 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 (“AIP”), the American Security Insurance Company Investment Plan, the Assurant Deferred Compensation Plan, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of

investments in the AIP, contingent considerations related to business combinations 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, 2019
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities	$	231.0	$	—		$	231.0		$	—
States, municipalities and political subdivisions	262.6		—			262.6			—
Foreign governments	981.1		0.5			980.6			—
Asset-backed	516.4		—			514.8			1.6
Commercial mortgage-backed	232.4		—			192.8			39.6
Residential mortgage-backed	1,262.4		—			1,258.6			3.8
U.S. corporate	6,371.0		—			6,359.7			11.3
Foreign corporate	2,371.9		—			2,320.8			51.1
Equity securities:
Mutual funds	44.2		44.2			—			—
Common stocks	18.8		18.1			0.7			—
Non-redeemable preferred stocks	329.2		—			327.0			2.2
Short-term investments	321.9		216.1		(2)	105.8			—
Other investments	235.0		70.6		(1)	163.9		(3)	0.5		(4)
Cash equivalents	607.8		604.0		(2)	3.8		(3)	—
Other receivables	5.0		—			—			5.0		(6)
Other assets	4.7		—			0.7		(5)	4.0		(5)
Assets held in separate accounts	1,799.1		1,621.4		(1)	177.7		(3)	—
Total financial assets	$	15,594.5	$	2,574.9		$	12,900.5		$	119.1

Financial Liabilities
Other liabilities	$	123.9	$	70.6	(1)	$	0.2	(5)	$	53.1	(6)
Liabilities related to separate accounts	1,799.1		1,621.4		(1)	177.7		(3)	—
Total financial liabilities	$	1,923.0	$	1,692.0		$	177.9		$	53.1



	December 31, 2018
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities	$	384.6	$	—		$	384.6		$	—
States, municipalities and political subdivisions	256.2		—			256.2			—
Foreign governments	912.1		0.5			911.6			—
Asset-backed	504.5		—			504.5			—
Commercial mortgage-backed	79.7		—			40.8			38.9
Residential mortgage-backed	1,405.8		—			1,405.8			—
U.S. corporate	5,593.0		—			5,580.3			12.7
Foreign corporate	2,121.2		—			2,071.7			49.5
Equity securities:
Mutual funds	45.0		45.0			—			—
Common stocks	15.3		14.6			0.7			—
Non-redeemable preferred stocks	318.5		—			316.3			2.2
Short-term investments	336.0		188.9		(2)	147.1			—
Other investments	224.9		62.9		(1)	161.5		(3)	0.5		(4)
Cash equivalents	527.7		523.6		(2)	4.1		(3)	—
Other receivables	5.0		—			—			5.0		(6)
Other assets	2.6		—			—			2.6		(5)
Assets held in separate accounts	1,575.7		1,400.1		(1)	175.6		(3)	—
Total financial assets	$	14,307.8	$	2,235.6		$	11,960.8		$	111.4

Financial Liabilities
Other liabilities	$	104.8	$	62.9	(1)	$	0.7	(5)	$	41.2	(6)
Liabilities related to separate accounts	1,575.7		1,400.1		(1)	175.6		(3)	—
Total financial liabilities	$	1,680.5	$	1,463.0		$	176.3		$	41.2


(1)	Primarily includes mutual funds and related obligations.


(2)	Primarily includes money market funds.


(3)	Primarily includes fixed maturity securities and related obligations.


(4)	Primarily includes fixed maturity securities and other derivatives.


(5)	Primarily includes other derivative assets and liabilities.


(6)	Primarily includes contingent consideration receivables/liabilities and derivative financial instruments.

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 and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of the dates indicated:



	June 30, 2019
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	783.1	$	811.6	$	—	$	—	$	811.6
Other investments	139.2		139.2		31.3		—		107.9
Other assets	36.9		36.9		—		—		36.9
Total financial assets	$	959.2	$	987.7	$	31.3	$	—	$	956.4
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	564.4	$	568.9	$	—	$	—	$	568.9
Funds withheld under reinsurance	308.0		308.0		308.0		—		—
Debt	2,007.3		2,169.3		—		2,169.3		—
Total financial liabilities	$	2,879.7	$	3,046.2	$	308.0	$	2,169.3	$	568.9

	December 31, 2018
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	759.6	$	735.1	$	—	$	—	$	735.1
Other investments	124.9		124.9		33.9		—		91.0
Other assets	43.0		43.0		—		—		43.0
Total financial assets	$	927.5	$	903.0	$	33.9	$	—	$	869.1
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	570.6	$	556.8	$	—	$	—	$	556.8
Funds withheld under reinsurance	272.0		272.0		272.0		—		—
Debt	2,006.0		2,058.7		—		2,058.7		—
Total financial liabilities	$	2,848.6	$	2,887.5	$	272.0	$	2,058.7	$	556.8

(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.