EXHIBIT 99.1

Assurant, Inc. and Subsidiaries
Consolidated Balance Sheets
At June 30, 2005 (unaudited) and December 31, 2004


	June 30,			December 31,
	2005			2004
	(in thousands except number of shares)
Liabilities
Future policy benefits and expenses	$	6,503,262		$	6,412,688
Unearned premiums		3,493,567			3,354,299
Claims and benefits payable		3,592,489			3,614,949
Commissions payable		223,739			294,561
Reinsurance balances payable		112,797			157,405
Funds held under reinsurance		85,934			96,226
Deferred gain on disposal of businesses		306,073			329,720
Obligation under securities lending		581,942			535,331
Accounts payable and other liabilities		1,109,135			1,328,483
Deferred income taxes, net		89,998			4,224
Tax payable		51,380			71,869
Debt		971,650			971,611
Mandatorily redeemable preferred stock		24,160			24,160
Liabilities related to separate accounts		3,467,215			3,717,149

Total liabilities	$	20,613,341		$	20,912,675

Commitments and contingencies (note 9)	$	—		$	—


Stockholders’ equity
Common stock, par value $.01 per share, 800,000,000 shares authorized, 142,423,632 and 142,263,299 shares issued, 136,347,600 and 139,766,177 shares outstanding at June 30, 2005 and December 31, 2004, respectively	$	1,424		$	1,423
Additional paid-in capital		2,839,098			2,790,476
Retained earnings		790,827			569,605
Unamortized restricted stock compensation; 110,506 and 51,996 shares at June 30, 2005 and December 31, 2004		(3,152	)		(608	)
Accumulated other comprehensive income		399,549			338,163
Treasury stock, at cost; 5,965,526 and 2,445,126 shares at June 30, 2005 and December 31, 2004		(184,324	)		(63,628	)

Total stockholders’ equity		3,843,422			3,635,431

Total liabilities and stockholders’ equity	$	24,456,763		$	24,548,106

See the accompanying notes to the consolidated financial statements

Assurant, Inc. and Subsidiaries
Consolidated Statement of Operations
Three and Six Months Ended June 30, 2005 and 2004 (Unaudited)


	Three Months Ended June 30,					Six Months Ended June 30,
	2005		2004			2005		2004
	(in thousands except number of shares and per share amounts)
Revenues
Net earned premiums and other considerations	$	1,623,239	$	1,615,473		$	3,255,133	$	3,240,711
Net investment income		177,018		157,628			341,218		311,452
Net realized gain on investments		4,079		5,722			4,571		19,946
Amortization of deferred gain on disposal of businesses		11,784		14,262			23,647		28,759
Loss on disposal of businesses		—		(9,232	)		—		(9,232	)
Fees and other income		58,183		55,310			112,088		107,435

Total revenues		1,874,303		1,839,163			3,736,657		3,699,071
Benefits, losses and expenses
Policyholder benefits		924,011		943,049			1,867,535		1,912,014
Amortization of deferred acquisition costs and value of business acquired		236,791		240,119			464,377		437,381
Underwriting, general and administrative expenses		510,088		496,117			1,009,295		1,034,711
Interest expense		15,314		15,834			30,628		25,997
Distributions on mandatorily redeemable preferred securities		—		—			—		2,163

Total benefits, losses and expenses		1,686,204		1,695,119			3,371,835		3,412,266

Income before income taxes		188,099		144,044			364,822		286,805
Income taxes		60,475		48,834			122,800		97,217

Net income	$	127,624	$	95,210		$	242,022	$	189,588


Earnings per share:
Basic	$	0.93	$	0.67		$	1.74	$	1.40
Diluted	$	0.92	$	0.67		$	1.73	$	1.40

Dividends per share	$	0.08	$	0.07		$	0.15	$	0.07
Share Data:
Weighted average shares outstanding used in basic per share calculations		137,700,163		142,196,828			138,712,723		135,859,214
Plus: Dilutive securities		1,319,225		24,166			1,317,326		11,722

Weighted average shares used in diluted per share calculations		139,019,388		142,220,994			140,030,049		135,870,936

See the accompanying notes to the consolidated financial statements

Assurant, Inc. and Subsidiaries
Consolidated Statement of Changes in Stockholders’ Equity
From December 31, 2004 through June 30, 2005 (unaudited)


								Unamortized			Accumulated									Shares of
			Additional					Restricted			Other									Common
	Common		Paid-in		Retained			Stock			Comprehensive			Treasury						Stock
	Stock		Capital		Earnings			Compensation			Income (Loss)			Stock			Total			Issued
	(in thousands except number of shares)
Balance, December 31, 2004	$	1,423	$	2,790,476	$	569,605		$	(608	)	$	338,163		$	(63,628	)	$	3,635,431			142,263,299
Issuance of Common stock		—		2,145		—			—			—			—			2,145			84,491
Issued Stock Appreciation Rights		—		43,775		—			—			—			—			43,775			—
Issuance of Restricted Shares		1		2,702		—			(2,703	)		—			—			—			75,842
Dividends		—		—		(20,800	)		—			—			—			(20,800	)		—
Acquistion of Treasury Shares		—		—		—			—			—			(120,696	)		(120,696	)		—
Amortization of restricted stock compensation		—		—		—			159			—			—			159			—
Comprehensive income:
Net income		—		—		242,022			—			—			—			242,022			—
Other comprehensive income:
Net change in unrealized gains on securities		—		—		—			—			41,980			—			41,980			—
Change in minimum pension liability		—		—		—			—			28,086			—			28,086			—
Foreign currency translation		—		—		—			—			(8,680	)		—			(8,680	)		—

Total other comprehensive income																		61,386			—

Total Comprehensive income:																		303,408			—

Balance, June 30, 2005	$	1,424	$	2,839,098	$	790,827		$	(3,152	)	$	399,549		$	(184,324	)	$	3,843,422			142,423,632

See the accompanying notes to the consolidated financial statements

Assurant, Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Six Months Ended June 30, 2005 and 2004 (unaudited)


	Six Months Ended
	June 30,
	2005			2004
	(in thousands)
Net cash provided by operating activities	$	194,610		$	313,359

Investing activities
Sales of:
Fixed maturities available for sale		796,435			975,775
Equity securities available for sale		41,195			50,210
Property and equipment		88			1,191
Maturities, prepayments, and scheduled redemption of:
Fixed maturities available for sale		420,103			393,978
Purchases of:
Fixed maturities available for sale		(1,482,181	)		(1,499,369	)
Equity securities available for sale		(96,987	)		(147,622	)
Property and equipment		(21,824	)		(25,184	)
Change in commercial mortgage loans on real estate		(51,760	)		(64,507	)
Change in short term investments		44,608			(40,819	)
Change in other invested assets		(12,114	)		(49,760	)
Change in policy loans		866			(163	)
Change in collateral held under securities lending		(46,611	)		(118,221	)
Net cash received related to sale of business		—			3,536

Net cash (used in) investing activities		(408,182	)		(520,955	)

Financing activities
Repayment of preferred securities of subsidiary trusts		—			(196,224	)
Issuance of debt		—			971,537
Issuance of common stock		2,145			725,491
Repayment of debt		—			(1,750,000	)
Purchase of treasury stock		(120,696	)		(797	)
Dividends paid		(20,800	)		(9,959	)
Change in obligation under securities lending		46,611			118,221

Net cash (used in) financing activities		(92,740	)		(141,731	)

Change in cash and cash equivalents		(306,312	)		(349,327	)
Cash and cash equivalents at beginning of period		807,082			958,197

Cash and cash equivalents at end of period	$	500,770		$	608,870

See the accompanying notes to the consolidated financial statements

Assurant, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Six Months Ended June 30, 2005 and 2004 (Unaudited)

1. Nature of Operations

Assurant, Inc. (formerly Fortis, Inc.) (the “Company”) is a holding company provider of specialized insurance products and related services in North America and selected international markets. Prior to the Initial Public Offering (“the IPO”) Fortis, Inc. was incorporated in Nevada and was indirectly wholly owned by Fortis N.V. of the Netherlands and Fortis SA/NV of Belgium (collectively, “Fortis”) through their affiliates, including their wholly owned subsidiary, Fortis Insurance N.V.

On February 5, 2004, Fortis sold approximately 65% of its ownership interest in Assurant, Inc. via the IPO and retained approximately 35% of its ownership (50,199,130 shares). In connection with the IPO, Fortis, Inc. was merged into Assurant, Inc., a Delaware corporation, which was formed solely for the purpose of the redomestication of Fortis, Inc. After the merger, Assurant, Inc. became the successor to the business, operations and obligations of Fortis, Inc. Assurant, Inc. is traded on the New York Stock Exchange under the symbol AIZ.

The following events occurred in connection with the Company’s IPO: (1) redeemed the outstanding $196,224 of mandatorily redeemable preferred securities in January 2004, (2) issued 68,976 shares of Common Stock of Assurant, Inc. to certain directors and officers of the Company, and (3) issued 32,976,854 shares of Common Stock of Assurant, Inc. to Fortis Insurance N.V. simultaneously with the closing of the IPO in exchange for a $725,500 capital contribution based on the public offering price of the Company’s common stock. The Company used the proceeds of the capital contribution to repay the $650,000 of outstanding indebtedness under the $650,000 senior bridge credit facility and $75,500 of outstanding indebtedness under the $1,100,000 senior bridge credit facility. The Company repaid a portion of the $1,100,000 senior bridge credit facility with $49,500 in cash. On February 18, 2004, the Company refinanced $975,000 of the remaining $1,100,000 senior bridge credit facility with the proceeds of the issuance of two senior long-term notes (See Note 4).

On January 21, 2005, Fortis owned approximately 36% (50,199,130 shares) of the Company based on the number of shares outstanding that day and sold 27,200,000 of those shares in a secondary offering to the public. The Company did not receive any of the proceeds from the sale of shares of common stock by Fortis. Fortis received all net proceeds from the sale. Fortis concurrently sold exchangeable bonds, due January 26, 2008, that are mandatorily exchangeable for their remaining 22,999,130 shares of Assurant. Fortis may elect, prior to the maturity date of the bonds, a cash settlement alternative and pay the bondholders an amount of cash equal to the applicable market value of the Company’s common stock. The exchangeable bonds and the shares of the Company’s common stock into which they are exchangeable have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Through its operating subsidiaries, the Company provides creditor-placed homeowners insurance, manufactured housing homeowners insurance, debt protection administration, credit insurance, warranties and extended service contracts, individual health and small employer group health insurance, group dental insurance, group disability insurance, group life insurance and pre-funded funeral insurance.

2. Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair statement of the financial statements have been included. Certain prior period amounts have been reclassified to conform to the 2005 presentation.

Dollar amounts are in thousands, except for number of shares and per share amounts.

Assurant, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Six Months Ended June 30, 2005 and 2004 (Unaudited)

The consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation.

Operating results for the three and six months ended June 30, 2005 are not necessarily indicative of the results that may be expected for the year ending December 31, 2005. The accompanying interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2004.

3. Recent Accounting Pronouncements

In December 2004, FASB issued Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment (“FAS 123R’’) which replaces Statement of Financial Accounting Standards No. 123, Share-Based Payment and supersedes Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees. FAS 123R requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. The pro forma disclosures previously permitted under FAS 123 no longer will be an alternative to financial statement recognition. Under FAS 123R, the company must determine the appropriate fair value model to be used for valuing share-based payments, the amortization method for compensation cost, and the transition method to be used at date of adoption. The permitted transition methods include either retrospective or prospective adoption. Under the retrospective option, prior periods may be restated either as of the beginning of the year of adoption or for all periods presented for all unvested stock options beginning with the first period presented. The prospective method requires that compensation expense be recorded for all unvested stock options at the beginning of the first quarter of adoption of FAS 123R. In April 2005, the Securities and Exchange Commission approved a new rule for public companies which delays the effective date of FAS 123R. Under the new rule, public companies are required to adopt FAS 123R in the first annual period after June 15, 2005, and, therefore, the Company is required to adopt FAS 123R by the first quarter of 2006. Except for this deferral of the effective date, the guidance in FAS 123R is unchanged. The Company is currently evaluating the requirements of FAS 123R and the potential impact on the Company’s financial statements.

In June 2005, the FASB issued Statement of Financial Accounting Standards No. 154, Accounting Changes and Error Corrections, a replacement of APB Opinion No. 20, Accounting Changes, and Statement No. 3, Reporting Accounting Changes in Interim Financial Statements” (“FAS 154’’). FAS 154 changes the accounting and reporting of a change in accounting principle. Prior to FAS 154, the majority of voluntary changes in

Assurant, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Six Months Ended June 30, 2005 and 2004 (Unaudited)

accounting principles were required to be recognized as a cumulative effect adjustment within net income during the period of the change. FAS 154 requires retrospective application to prior period financial statements unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. FAS 154 is effective for accounting changes made in fiscal years beginning after December 15, 2005 but does not change the transition provisions of any existing accounting pronouncements. The Company does not believe the adoption of FAS 154 will have a material effect on our consolidated financial position or results of operations.

4. Debt

In December 2003, the Company entered into two senior bridge credit facilities of $650,000 and $1,100,000. The aggregate indebtedness of $1,750,000 under the facility was in connection with the extinguishment of the Company’s Mandatorily Redeemable Preferred Securities. The $1,750,000 aggregate indebtedness under the senior bridge credit facility was paid in full in February 2004.

In February 2004, the Company issued two series of senior notes with an aggregate principal amount of $975,000. The Company received net proceeds from this transaction of $971,537, which represents the principal amount less the discount. The discount will be amortized over the life of the notes. The first series is $500,000 in principal amount, bears interest at 5.63% per year and is payable in a single installment due February 15, 2014 and was issued at a 0.11% discount. The second series is $475,000 in principal amount, bears interest at 6.75% per year and is payable in a single installment due February 15, 2034 and was issued at a 0.61% discount. Interest on the senior notes is payable semi-annually on February 15 and August 15 of each year. The senior notes are unsecured obligations and rank equally with all of the Company’s other senior unsecured indebtedness. The senior notes are not redeemable prior to maturity. The senior notes were registered with the Securities and Exchange Commission in 2004 and all of the holders exchanged their notes for the new, registered notes.

The interest expense incurred related to the senior notes was $15,047 and $15,548 for the three months ended June 30, 2005 and 2004, respectively, and $30,094 and $22,236 for the six months ended June 30, 2005 and 2004, respectively.

The Company maintains a $500,000 commercial paper program, which is available for working capital and other general corporate purposes. The Company’s subsidiaries do not maintain commercial paper or other borrowing facilities at their level. This program is backed up by a $500,000 senior revolving credit facility with a syndicate of banks arranged by J.P. Morgan Securities, Inc. (successor by merger to Banc One Capital Markets, Inc.) and Citigroup Global Markets, Inc., which was established on January 30, 2004. In April 2005, the Company amended and restated its $500,000 senior revolving credit facility with a syndicate of banks arranged by Citibank and JP Morgan Chase Bank. The amended and restated credit facility is unsecured and is available until April 2010, so long as the Company is in compliance with all the covenants. This facility is also available for general corporate purposes, but to the extent used thereto, would be unavailable to back up the commercial paper program. On February 3, 2005, the Company used $40,000 from the commercial paper program for general corporate purposes, which was repaid on February 17, 2005. There were no amounts relating to the commercial paper program outstanding at June 30, 2005. The Company did not use the revolving credit facility during the six months ended June 30, 2005 and no amounts are currently outstanding.

The revolving credit facility contains restrictive covenants. The terms of the revolving credit facility also require that the Company maintain certain specified minimum ratios and thresholds. The Company is in compliance with all covenants and the Company maintains all specified minimum ratios and thresholds.

Assurant, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Six Months Ended June 30, 2005 and 2004 (Unaudited)

5. Stock Based Compensation

Long-Term Incentive Plan

Restricted Shares

The Long-Term Incentive Plan authorizes the granting of awards to employees, officers, and directors. The expense recorded related to restricted shares was $525 and $357 for the three months ended June 30, 2005 and 2004, respectively, and $604 and $609 for the six months ended June 30, 2005 and 2004, respectively.


	For the Six
	Months Ended
	June 30, 2005
Restricted shares outstanding, December 31, 2004		51,996
Grants		88,473
Vested		(29,963	)
Forfeitures		—

Restricted shares outstanding, June 30, 2005		110,506

Stock Appreciation Rights Plan

On April 7, 2005, the Company approved an amendment to the Stock Appreciation Rights Plan (“SARs Plan”). The amendment, which was effective June 30, 2005, amended the plan from one that paid appreciation to participants in the form of cash to a plan that pays appreciation to participants in the form of company stock. As a result of the amendment, 2,633,816 Assurant, Inc. rights and 568,937 business unit rights under the previous plan were converted into 4,726,384 rights under the amended SARs Plan at June 30, 2005. The intrinsic value of the converted rights did not change from that of the existing rights under the previous plan. Of the converted rights, approximately 43% are fully vested. The remainder will become fully vested over the next two years in accordance with their original vesting period. The conversion of the existing rights under the previous plan to the amended SARs Plan resulted in a $43,775 reclass of a liability to additional paid-in capital at June 30, 2005.

Two additional grants were made under the SARs Plan during the period. On June 3, 2005, the Company granted 11,921 rights to its board of directors at an exercise price of $35.25 that were immediately vested and expensed. On June 30, 2005, the Company granted 1,051,641 rights to certain Company executives at an exercise price of $35.64. These shares have a three year cliff vesting period starting from January 1, 2005, and will be expensed over that period.

Until adoption of FAS 123R (see Note 3), the Company will continue to account for the SARs Plan as a variable plan in accordance with the provisions of Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”) and its interpretations. The SARs Plan meets the requirements for a compensatory plan, and accordingly the Company records an expense based on the intrinsic value.


	For the Six
	Months Ended
	June 30, 2005
Stock Appreciation Rights outstanding, December 31, 2004		—
Converted shares from cash based plan		4,726,384
Grants		1,063,562
Exercises		—
Forfeitures		—

Stock Appreciation Rights outstanding, June 30, 2005		5,789,946

Assurant, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Six Months Ended June 30, 2005 and 2004 (Unaudited)

Executive 401K Plan

During 2005, the Company purchased 12,900 treasury shares for $438 via a Rabbi Trust which was allocated to the Assurant Stock Fund. See Note 6 for further information.

Employee Stock Purchase Plan

The Company established an Employee Stock Purchase Plan (“ESPP”) which went into effect on July 1, 2004. In January 2005, the Company issued 71,860 shares to employees relating to the ESPP at a price of $23.67 for the offering period of July 1 through December 31, 2004. In July 2005, the Company issued 77,017 shares to employees relating to the ESPP at a price of $27.63 for the offering period of January 1 through June 30, 2005.

The Company accounts for the ESPP in accordance with APB 25 as a non-compensatory plan, and accordingly does not record any compensation expense.

The following pro forma information of net income and net income per share amounts were determined as if the Company had accounted for the ESPP and SARs Plans under the fair value method of FAS 123. This disclosure is not equivalent to the impact the Company will incur upon adoption of FAS 123R at January 1, 2006. The Company is currently evaluating the requirements of FAS 123R.


	For the Three			For the Six
	Months Ended			Months Ended
	June 30, 2005			June 30, 2005
Net income as reported	$	127,624		$	242,022
Add: Stock-based employee compensation expense included in reported net income, net of related tax effects		5,796			16,637
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards, net of related tax effects		(21,450	)		(32,047	)

Pro forma net income	$	111,970		$	226,612


Earnings per share as reported:
Basic	$	0.93		$	1.74
Diluted	$	0.92		$	1.73

Pro forma earnings per share:
Basic	$	0.81		$	1.63
Diluted	$	0.81		$	1.62

Assurant, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Six Months Ended June 30, 2005 and 2004 (Unaudited)

7. Retirement and Other Employee Benefits

The components of net periodic benefits cost for the Company’s qualified pension benefits and post retirement plans for the three and six months ended June 30, 2005 were as follows:


	Pension Benefits						Retirement Health Benefits
	For the three months						For the three months
	ended June 30,						ended June 30,
	2005			2004			2005			2004
Service cost	$	4,575		$	4,189		$	629		$	534
Interest cost		5,065			4,859			781			716
Expected return on plan assets		(6,565	)		(5,603	)		(267	)		(135	)
Amortization of prior service cost		764			761			327			327
Amortization of net loss		1,766			1,636			—			—

Net periodic benefit cost	$	5,605		$	5,842		$	1,470		$	1,442


	Pension Benefits						Retirement Health Benefits
	For the six months						For the six months
	ended June 30,						ended June 30,
	2005			2004			2005			2004
Service cost	$	9,060		$	8,601		$	1,195		$	1,104
Interest cost		10,116			9,694			1,559			1,504
Expected return on plan assets		(12,554	)		(11,125	)		(413	)		(270	)
Amortization of prior service cost		1,528			1,500			654			654
Amortization of net loss		3,405			2,347			—			—

Net periodic benefit cost	$	11,555		$	11,017		$	2,995		$	2,992

During the first three months of 2005, the Company contributed $40,000 and zero to the qualified pension plan and the retirement health benefit plan, respectively. This is consistent with the Company’s projected contribution amounts disclosed in its 2004 Form 10-K. The Company made no contribution during the three months ended June 30, 2005. As a result of the $40,000 cash contribution to its qualified pension plan, the Company reversed $28,086, net of tax, representing a portion of the minimum pension liability, which was previously recorded in accumulated other comprehensive income. An additional minimum pension liability of $9,485, net of tax, related to the non-qualified plan, remains within accumulated other comprehensive income.

The Company’s nonqualified plans are unfunded. The net periodic costs were $2,879 and $2,781 for the three months ended June 30, 2005 and 2004, respectively, and $5,654 and $5,181 for the six months ended June 30, 2005 and 2004, respectively.

8. Segment Information

The Company has five reportable segments, which are defined based on the nature of the products and services offered: Assurant Solutions, Assurant Health, Assurant Employee Benefits, Assurant Preneed, and Corporate and Other. Assurant Solutions provides credit insurance, including life, disability and unemployment, debt protection administration services, warranties and extended service contracts, creditor-placed homeowners insurance and manufactured housing homeowners insurance. Assurant Health provides individual, short-term and

Assurant, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Six Months Ended June 30, 2005 and 2004 (Unaudited)

The following tables summarize selected financial information by segment:


	Three Months Ended June 30, 2005
	Solutions		Health		Employee Benefits		PreNeed			Corporate & Other			Consolidated
Revenues
Net earned premiums and other considerations	$	636,688	$	544,294	$	316,420	$	125,837		$	—		$	1,623,239
Net investment income		52,262		17,170		38,274		62,688			6,624			177,018
Net realized gains on investments		—		—		—		—			4,079			4,079
Amortization of deferred gain on disposal of businesses		—		—		—		—			11,784			11,784
Fees and other income		40,938		10,270		6,993		(196	)		178			58,183

Total revenues		729,888		571,734		361,687		188,329			22,665			1,874,303

Benefits, losses and expenses
Policyholder benefits		221,473		333,101		241,537		127,900			—			924,011
Amortization of deferred acquisition costs and value of business acquired		194,268		7,584		5,184		29,755			—			236,791
Underwriting, general and administrative expenses		226,529		155,801		99,843		10,977			16,938			510,088
Interest expense		—		—		—		—			15,314			15,314

Total benefits, losses and expenses		642,270		496,486		346,564		168,632			32,252			1,686,204
Segment income (loss) before income tax		87,618		75,248		15,123		19,697			(9,587	)		188,099
Income taxes		29,056		25,881		5,311		6,857			(6,630	)		60,475


Segment income (loss) after tax	$	58,562	$	49,367	$	9,812	$	12,840		$	(2,957	)

Net income													$	127,624


	Three Months Ended June 30, 2004
	Solutions		Health		Employee Benefits		PreNeed		Corporate & Other			Consolidated
Revenues
Net earned premiums and other considerations	$	610,630	$	559,361	$	309,159	$	136,323	$	—		$	1,615,473
Net investment income		44,868		16,716		37,437		52,469		6,138			157,628
Net realized gains on investments		—		—		—		—		5,722			5,722
Amortization of deferred gain on disposal of businesses		—		—		—		—		14,262			14,262
Loss on disposal of businesses		—		—		—		—		(9,232	)		(9,232	)
Fees and other income		35,818		11,035		6,734		1,494		229			55,310

Total revenues		691,316		587,112		353,330		190,286		17,119			1,839,163

Benefits, losses and expenses
Policyholder benefits		220,215		358,729		228,842		135,263		—			943,049
Amortization of deferred acquisition costs and value of business acquired		196,049		10,016		6,220		27,834		—			240,119
Underwriting, general and administrative expenses		218,338		157,737		96,517		11,556		11,969			496,117
Interest expense		—		—		—		—		15,834			15,834

Total benefits, losses and expenses		634,602		526,482		331,579		174,653		27,803			1,695,119

Segment income (loss) before income tax		56,714		60,630		21,751		15,633		(10,684	)		144,044
Income taxes		18,146		20,695		7,725		5,494		(3,226	)		48,834

Segment income (loss) after tax	$	38,568	$	39,935	$	14,026	$	10,139	$	(7,458	)

Net income												$	95,210

Assurant, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Six Months Ended June 30, 2005 and 2004 (Unaudited)


	Six Months Ended June 30, 2005
	Solutions		Health		Employee Benefits		PreNeed		Corporate & Other			Consolidated
Revenues
Net earned premiums and other considerations	$	1,251,935	$	1,093,820	$	662,342	$	247,036	$	—		$	3,255,133
Net investment income		100,427		34,875		76,257		115,700		13,959			341,218
Net realized gains on investments		—		—		—		—		4,571			4,571
Amortization of deferred gain on disposal of businesses		—		—		—		—		23,647			23,647
Fees and other income		77,041		20,601		13,182		983		281			112,088

Total revenues		1,429,403		1,149,296		751,781		363,719		42,458			3,736,657

Benefits, losses and expenses
Policyholder benefits		424,738		678,469		509,275		255,053		—			1,867,535
Amortization of deferred acquisition costs and value of business acquired		381,488		16,507		9,890		56,492		—			464,377
Underwriting, general and administrative expenses		453,898		303,641		192,154		21,771		37,831			1,009,295
Interest expense		—		—		—				30,628			30,628

Total benefits, losses and expenses		1,260,124		998,617		711,319		333,316		68,459			3,371,835

Segment income (loss) before income tax		169,279		150,679		40,462		30,403		(26,001	)		364,822
Income taxes		55,947		51,639		14,271		10,607		(9,664	)		122,800

Segment income (loss) after tax	$	113,332	$	99,040	$	26,191	$	19,796	$	(16,337	)

Net income												$	242,022


Segment Assets:	As of June 30, 2005

Segments assets, excluding goodwill	$	7,334,060	$	1,752,361	$	2,940,684	$	4,441,361	$	7,167,796		$	23,636,262

Goodwill													820,501

Total Assets												$	24,456,763


	Six Months Ended June 30, 2004
	Solutions		Health		Employee Benefits		PreNeed		Corporate & Other			Consolidated
Revenues
Net earned premiums and other considerations	$	1,233,695	$	1,110,308	$	627,203	$	269,505	$	—		$	3,240,711
Net investment income		89,627		33,663		73,159		102,646		12,357			311,452
Net realized gains on investments		—		—		—		—		19,946			19,946
Amortization of deferred gain on disposal of businesses		—		—		—		—		28,759			28,759
Loss on disposal of businesses		—		—		—		—		(9,232	)		(9,232	)
Fees and other income		65,025		20,390		17,118		3,535		1,367			107,435

Total revenues		1,388,347		1,164,361		717,480		375,686		53,197			3,699,071

Benefits, losses and expenses
Policyholder benefits		451,791		714,844		473,168		272,211		—			1,912,014
Amortization of deferred acquisition costs and value of business acquired		353,551		21,005		7,735		55,090		—			437,381
Underwriting, general and administrative expenses		467,386		312,149		194,347		22,813		38,016			1,034,711
Interest expense		—		—		—		—		25,997			25,997
Distributions on mandatorily redeemable preferred securities		—		—		—		—		2,163			2,163

Total benefits, losses and expenses		1,272,728		1,047,998		675,250		350,114		66,176			3,412,266

Segment income (loss) before income tax		115,619		116,363		42,230		25,572		(12,979	)		286,805
Income taxes		36,998		39,720		14,954		8,977		(3,432	)		97,217

Segment income (loss) after tax	$	78,621	$	76,643	$	27,276	$	16,595	$	(9,547	)

Net income												$	189,588

Segment Assets:	Year Ended December 31, 2004

Segments assets, excluding goodwill	$	7,277,524	$	1,784,574	$	2,887,860	$	4,289,401	$	7,485,693		$	23,725,052

Goodwill													823,054

Total assets												$	24,548,106

Assurant, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Six Months Ended June 30, 2005 and 2004 (Unaudited)

9. Commitments and Contingencies

In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements. These letters of credit are supported by commitments with financial institutions. The Company had $75,529 of letters of credit outstanding as of June 30, 2005.

The Company is regularly involved in litigation in the ordinary course of business, both as a defendant and as a plaintiff. The Company may from time to time be subject to a variety of legal and regulatory actions relating to the Company’s current and past business operations. While the Company cannot predict the outcome of any pending or future litigation, examination or investigation, the Company does not believe that any pending matter will have a material adverse effect on the Company’s financial condition or results of operations.

The Solutions segment is subject to a number of pending actions, primarily in the State of Mississippi, many of which allege that the Company’s credit insurance products were packaged and sold with lenders’ products without buyer consent. The judicial climate in Mississippi is such that the outcome of these cases is extremely unpredictable. The Company has been advised by legal counsel that the Company has meritorious defenses to all claims being asserted against the Company. The Company believes, based on information currently available, that the amounts accrued are adequate.

In addition, another part of the Solutions segment, American Reliable Insurance Company (“ARIC”), participated in certain excess of loss reinsurance programs in the London market and, as a result, reinsured certain personal accident, ransom and kidnap insurance risks from 1995 to 1997. ARIC and a foreign affiliate ceded a portion of these risks to other reinsurers (retrocessionaires). ARIC ceased reinsuring such business in 1997. However, certain risks continued beyond 1997 due to the nature of the reinsurance contracts written. ARIC and some of the other reinsurers involved in the programs are seeking to avoid certain treaties on various grounds, including material misrepresentation and non-disclosure by the ceding companies and intermediaries involved in the programs. Similarly, some of the retrocessionaires are seeking avoidance of certain treaties with ARIC and the other reinsurers and some reinsureds are seeking collection of disputed balances under some of the treaties. The disputes generally involve multiple layers of reinsurance, and allegations that the reinsurance programs involved interrelated claims “spirals” devised to disproportionately pass claims losses to higher-level reinsurance layers. Many of the companies involved in these programs, including ARIC, are currently involved in negotiations, arbitration and/or litigation between multiple layers of retrocessionaires, reinsurers, ceding companies and intermediaries, including brokers, in an effort to resolve these disputes. Many of those disputes relating to the 1995 program year, including those involving ARIC, were settled on December 3, 2003. Loss accruals previously established relating to the 1995 program year were adequate. However, the Company’s exposure under the 1995 program year was less significant than the exposure remaining under the 1996 and 1997 program years. In addition, disputes with two affiliated reinsurers involved in the 1996 and 1997 program years were settled by a commutation agreement. During the second quarter of 2005, loss accruals relating to the 1996 program year were strengthened by approximately $7,800. The Company believes, based on information currently available, that the amounts accrued for currently outstanding disputes are adequate. This loss accrual is management’s best estimate. However, the inherent uncertainty of arbitrations and lawsuits, including the uncertainty of estimating whether any settlements the Company may enter into in the future would be on favorable terms, makes it difficult to predict the outcomes with certainty.

The Company was notified on August 26, 2004 that one of our employees is being investigated by the criminal division of the Internal Revenue Service (“IRS”) for responses he made to questions he was asked by the IRS relating to an approximately $18,000 tax reserve taken by the Company in 1999. At this stage, it would be speculative to predict the outcome of this investigation. However, it could result in a fine assessed against the employee and the Company, negative publicity for the Company or more serious sanctions.

As disclosed in the Risk Factors section of the Company’s 2004 Annual Report on Form 10-K, one of the Company’s reinsurers thinks the Company should have been accounting for premiums ceded to them as a loan instead of as an expense. Based on the Company’s investigation to date into this matter, the Company has concluded that there was a verbal side agreement with respect to one of the Company’s reinsurers under its catastrophic reinsurance program, which has accounting implications that may impact previously reported financial statements. While management believes that the difference resulting from any alternative accounting treatment would be immaterial to the Company’s financial position or results of operations, regulators may reach a different conclusion. In 2004, 2003 and 2002, premiums ceded to this reinsurer were $2,600, $1,500 and $500, respectively, and losses ceded were $10,000, $0, and $0, respectively. This contract expired in December of 2004 and was not renewed.

As part of ongoing, industry-wide investigations, the Company has previously received subpoenas for information from the United States Securities and Exchange Commission and the United States Attorney for the Southern District of New York. The areas of inquiry addressed to the Company include “certain loss mitigation products” and documents relating to the use of finite risk insurance. The Company has conducted an evaluation of the transactions that could potentially fall within the scope of the subpoenas, as defined by the authorities, and has provided information as requested. As previously reported, the Audit Committee of the Company’s Board of Directors is conducting an investigation of the matters raised by the subpoenas and has retained independent counsel to assist them.

The Audit Committee’s continuing investigation has raised the question of whether certain current and former employees acted properly in connection with the above mentioned reinsurance arrangement. The Company is reassessing its controls and the appropriateness of its conclusion regarding their effectiveness. The Company has enhanced its internal controls regarding reinsurance and will continue to further evaluate its internal controls.

10. Subsequent Events

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

(Dollar amounts in thousands except share data)

Management’s Discussion and Analysis of Financial Condition and Results of Operations addresses the financial condition of Assurant, Inc. and its subsidiaries (which we refer to collectively as Assurant) as of June 30, 2005, compared with December 31, 2004, and our results of operations for the three and six months ended June 30, 2005 and 2004. This discussion should be read in conjunction with our MD&A and annual audited financial statements as of December 31, 2004 included in our Form 10-K for the year ended December 31, 2004 filed with the U.S. Securities and Exchange Commission and the June 30, 2005 unaudited consolidated financial statements and related notes.

Some of the statements in this MD&A and elsewhere in this report may contain forward-looking statements that reflect our current views with respect to, among other things, future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this report are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in this report. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements you read in this report reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, financial condition, growth strategy and liquidity.

Company Overview

Assurant is a premier provider of specialized insurance products and related services in North America and selected international markets. The four business segments — Assurant Solutions; Assurant Health; Assurant Employee Benefits; and Assurant Preneed — have partnered with clients who are leaders in their industries and have built leadership positions in a number of specialty insurance market segments in the U.S. and selected international markets. The Assurant business segments provide creditor-placed homeowners insurance; manufactured housing homeowners insurance; debt protection administration services; credit insurance including life, disability and unemployment; warranties and extended services contracts; individual, short-term and small employer group health insurance; group dental insurance; group disability insurance; group life insurance; and pre-funded funeral insurance.

Critical Accounting Estimates

Reserves

Long Duration

The following is a discussion of the process by which we determine one reserve for our major long duration product line.

Reserves for future policy benefits are recorded as the present value of future benefits to policyholders and related expenses less the present value of future net premiums. Reserve assumptions are

selected using best estimates for expected investment yield, inflation, mortality and withdrawal rates. These assumptions reflect current trends and are based on our experience and include a provision for possible unfavorable deviation. An unearned revenue reserve is also recorded which represents the balance of the excess of gross premiums over net premiums that is still to be recognized as income in future years in a constant relationship to insurance in force.

Loss recognition testing is performed annually and reviewed quarterly. Such testing involves the use of best estimate assumptions to determine if the net liability position (all liabilities less Deferred Acquisition Costs (“DAC”)) exceeds the minimum liability needed. Any premium deficiency would first be addressed by removing the provision for unfavorable deviation. To the extent a premium deficiency still remains, it would be recognized immediately by a charge to the statement of operations and a corresponding reduction in DAC. Any deficiency in excess of DAC would be recognized as a premium deficiency reserve. There were no premium deficiencies recognized for the six months ended June 30, 2005.

Short Duration

For short duration contracts, claims and benefits payable reserves are recorded when insured events occur. The liability is based on the expected ultimate cost of settling the claims. The claims and benefits payable reserves include (1) case reserves for known but unpaid claims as of the balance sheet date; (2) incurred but not reported (“IBNR”) reserves for claims where the insured event has occurred but has not been reported to us as of the balance sheet date; and (3) loss adjustment expense reserves for the expected handling costs of settling the claims. Periodically, we review emerging experience and make adjustments to our case reserves and assumptions where necessary. Below are further discussions on the reserving process for our major short duration products.

Group Disability and Group Term Life

Case or claim reserves are set for active individual claims on group disability policies and for disability waiver of premium benefits on group term life policies. Assumptions considered in setting such reserves include disabled life mortality and claim termination rates (the rates at which disabled claimants come off claim, either through recovery or death), claim management practices, awards for social security and other benefit offsets and yield rates earned on assets supporting the reserves.

Factors considered when setting IBNR reserves include patterns in elapsed time from claim incidence to claim reporting, and elapsed time from claim reporting to claim payment.

Medical

IBNR reserves represent the largest component of reserves estimated for claims and benefits payable in our Medical line of business, and we use a number of methods in their estimation, including the loss development method and the projected claim method for recent claim periods. We use several methods in our Medical line of business because of the limitations of relying exclusively on a single method. Loss development factors selected take into consideration claims processing levels, claims under case management, medical cost inflation, seasonal effects, medical provider discounts and product mix.

Property and Warranty

Our Property and Warranty line of business includes creditor-placed homeowners, manufactured housing homeowners, credit property, credit unemployment and warranty insurance and some longer-tail coverages which we no longer write (e.g. asbestos, environmental, other general liability and personal accident). Our Property and Warranty loss reserves consist of case reserves and bulk reserves. Bulk reserves consist of IBNR and development on case reserves. The method we most often use in setting our Property and Warranty bulk reserves is the loss development method. Under this method, we estimate

ultimate losses for each accident period by multiplying the current cumulative losses by the appropriate loss development factor. We then calculate the bulk reserve as the difference between the estimate of ultimate losses and the current case-incurred losses (paid losses plus case reserves). We select loss development factors based on a review of historical averages, and we consider recent trends and business specific matters such as current claims payment practices.

We may use other methods depending on data credibility and product line. We use the estimates generated by the various methods to establish a range of reasonable estimates. The best estimate of reserves is selected from the middle to upper end of third quartile of the range of reasonable estimates.

Reinsurance

We utilize ceded reinsurance for loss protection and capital management, business dispositions and, in Assurant Solutions, for client risk and profit sharing.

Loss Protection and Capital Management

As part of our overall risk and capacity management strategy, we purchase reinsurance for certain risks underwritten by our various business segments, including significant individual or catastrophic claims, which enables us to free up capital to enable us to write additional business.

For those product lines where there is exposure to catastrophes, we closely monitor and manage the aggregate risk exposure by geographic area, and we have entered into reinsurance treaties to manage exposure to these types of events.

Under indemnity reinsurance transactions in which we are the ceding insurer, we remain liable for policy claims if the assuming company fails to meet its obligations. To minimize this risk, we have control procedures to evaluate the financial condition of reinsurers and to monitor the concentration of credit risk. The selection of reinsurance companies is based on criteria related to solvency and reliability and, to a lesser degree, diversification as well as developing strong relationships with our reinsurers for the sharing of risks.

Business Dispositions

We have used reinsurance to exit certain businesses to facilitate the transaction because the businesses share legal entities with business segments that we retain. Assets backing liabilities ceded relating to these businesses are held in trusts, and the separate accounts relating to divested business are still reflected in our balance sheet.

Assurant Solutions Segment Client Risk and Profit Sharing

The Assurant Solutions segment writes business produced by its clients, such as mortgage lenders and servicers and financial institutions, and reinsures all or a portion of such business to insurance subsidiaries of the clients. Such arrangements allow significant flexibility in structuring the sharing of risks and profits on the underlying business.

A substantial portion of Assurant Solutions’ reinsurance activities are related to agreements to reinsure premiums and risk related to business generated by certain clients to the client’s captive insurance companies or to reinsurance subsidiaries in which the clients have an ownership interest. Through these arrangements, our insurance subsidiaries share some of the premiums and risk related to client-generated business with these clients. When the reinsurance companies are not authorized to do business in our insurance subsidiary’s domiciliary state, our insurance subsidiary generally obtains collateral, such as a trust or a letter of credit, from the reinsurance company or its affiliate in an amount equal to the outstanding reserves to obtain full financial credit in the domiciliary state for the reinsurance. Our reinsurance

agreements do not relieve us from our direct obligation to our insured. Thus, a credit exposure exists to the extent that any reinsurer is unable to meet the obligations assumed in the reinsurance agreements. To minimize our exposure to reinsurance insolvencies, we evaluate the financial condition of our reinsurers and hold substantial collateral (in the form of funds, trusts and letters of credit) as security under the reinsurance agreements.

Retirement and Other Employee Benefits

We sponsor a pension and a retirement health benefit plan covering our employees who meet specified eligibility requirements. The reported expense and liability associated with these plans requires an extensive use of assumptions which include the discount rate, expected return on plan assets and rate of future compensation increases. We determine these assumptions based upon currently available market and industry data, historical performance of the plan and its assets, and consultation with an independent consulting actuarial firm to aid us in selecting appropriate assumptions and valuing our related liabilities. The actuarial assumptions used in the calculation of our aggregate projected benefit obligation may vary and include an expectation of long-term market appreciation in equity markets which is not changed by minor short-term market fluctuations, but does change when large interim deviations occur. The assumptions we use may differ materially from actual results due to changing market and economic conditions, higher or lower withdrawal rates or longer or shorter life spans of the participants.

Critical Accounting Policies

Our 2004 Form 10-K described the accounting policies that are critical to the understanding of our results of operations, financial condition and liquidity. The accounting policies described in the 2004 Form 10-K were consistently applied to the consolidated interim financial statements for the six months ended June 30, 2005.

As stated in our 2004 Form 10K, we adopted FAS 142, Goodwill and Other Intangible Assets, on January 1, 2002. As part of the adoption of FAS 142, we are required to test goodwill on an annual basis. We performed a January 1, 2005 impairment test during the first quarter and concluded that goodwill is not impaired.

Recent Accounting Pronouncements

See — Financial Statement Footnote 3.

Assurant Consolidated

Overview

The tables below present information regarding Assurant’s Consolidated results of operations:


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2005			2004			2005			2004
	(in thousands)						(in thousands)
Revenues:
Net earned premiums and other considerations	$	1,623,239		$	1,615,473		$	3,255,133		$	3,240,711
Net investment income		177,018			157,628			341,218			311,452
Net realized gains on investments		4,079			5,722			4,571			19,946
Amortization of deferred gain on disposal of businesses		11,784			14,262			23,647			28,759
Loss on disposal of businesses		—			(9,232	)		—			(9,232	)
Fees and other income		58,183			55,310			112,088			107,435

Total revenues		1,874,303			1,839,163			3,736,657			3,699,071

Benefits, losses and expenses:
Policyholder benefits		(924,011	)		(943,049	)		(1,867,535	)		(1,912,014	)
Selling, underwriting and general expenses (1)		(746,879	)		(736,236	)		(1,473,672	)		(1,472,092	)
Interest expense		(15,314	)		(15,834	)		(30,628	)		(25,997	)
Distribution on preferred securities		—			—			—			(2,163	)

Total benefits, losses and expenses		(1,686,204	)		(1,695,119	)		(3,371,835	)		(3,412,266	)

Segment income before income tax		188,099			144,044			364,822			286,805
Income taxes		(60,475	)		(48,834	)		(122,800	)		(97,217	)

Segment income after tax	$	127,624		$	95,210		$	242,022		$	189,588


(1)		Includes amortization of DAC and VOBA and underwriting, general and administrative expenses.

The following discussion provides a high level analysis of how the consolidated results were affected by our four operating business segments and our Corporate & other segment. Please see the results of operations discussions for each of these segments contained in this document for more detail analysis of the fluctuations.

For The Three Months Ended June 30, 2005 Compared to The Three Months Ended June 30, 2004.

Net Income

Net income increased by $32,414, or 34%, to $127,624 for the three months ended June 30, 2005 from $95,210 for the three months ended June 30, 2004. The increase in net income was primarily due to increases in Assurant Solutions and Assurant Health. The increase in Assurant Solutions was primarily attributable to improved loss experience in their Specialty Property businesses and improved underwriting results and increased fee and investment income in their Consumer Protection businesses. The increase in Assurant Health was primarily attributable to an improved loss ratio in their small employer group business, partially offset by a decline in members in both individual markets and small employer group business.

Total Revenues

Total revenues increased by $35,140, or 2%, to $1,874,303 for the three months ended June 30, 2005 from $1,839,163 for the three months ended June 30, 2004. The increase in total revenues was primarily due to increases in Assurant Solutions and Assurant Employee Benefits partially offset by a decrease in Assurant Health. The increase in Assurant Solutions was primarily due to an increase in net earned premiums and other considerations from their specialty property products of $14,968 and from their consumer protection products of $11,090. Also contributing to the increase in Assurant Solutions was an increase in net investment income of $7,394 and fee and other income of $5,120. The increase in Assurant Employee Benefits was primarily due to an increase in net earned premiums and other considerations of $7,261. The decrease in Assurant Health was primarily due to a decline in net earned premiums from their

small employer group business of $31,914, partially offset by an increase in their individual markets business of $16,847.

Total Expenses

Total expenses decreased by $8,915, or 1%, to $1,686,204 for the three months ended June 30, 2005 from $1,695,119 for the three months ended June 30, 2004. The decrease in total expenses was primarily due to a decrease in Assurant Health partially offset by increases in Assurant Solutions and Assurant Employee Benefits. The decrease in Assurant Health was primarily due to a decrease in their loss ratio of 290 basis points from 64.1% to 61.2%. The increase in Assurant Solutions was primarily driven by an increase in selling, underwriting and general expenses of $6,410. The increase at Assurant Employee Benefits was primarily driven by an increase in policyholder benefits of $12,695 and selling, underwriting and general expenses of $2,290.

For The Six Months Ended June 30, 2005 Compared to The Six Months Ended June 30, 2004.

Net Income

Net income increased by $52,434, or 28%, to $242,022 for the six months ended June 30, 2005 from $189,588 for the six months ended June 30, 2004. The increase in net income was primarily due to increases in Assurant Solutions and Assurant Health partially offset by a decrease in Corporate & other. The increase in Assurant Solutions was primarily attributable to improved loss experience in their Specialty Property businesses and increased fee and investment income in their Consumer Protection businesses. The increase in Assurant Health was primarily attributable to an improved loss ratio in their small employer group business, partially offset by a decline in members in both individual markets and small employer group business. The decrease in Corporate & other was primarily due to a decrease in realized gains on investments and the continued decline in the amortization of deferred gains from the sale of the FFG and LTC businesses. These declines were partially offset by the loss on the sale of our Workability division that was recognized in May 2004.

Total Revenues

Total revenues increased by $37,586, or 1%, to $3,736,657 for the six months ended June 30, 2005 from $3,699,071 for the six months ended June 30, 2004. The increase in total revenues was driven by increases in Assurant Solutions and Assurant Employee Benefits partially offset by decreases in Assurant Health, Assurant PreNeed, and Corporate & other. The increase in Assurant Solutions was primarily due to an increase in net earned premiums and other considerations from their specialty property products of $33,105, partially offset by a decrease from their consumer protection products of $14,865. Also contributing to the increase in Assurant Solutions was an increase in net investment income of $10,800 and fees and other income of $12,016. The increase in Assurant Employee Benefits was primarily due to an increase in net earned premiums and other considerations of $35,139 and net investment income of $3,098, partially offset by a decrease in fees and other income of $3,936 due to the sale of the Workability division in May 2004. The decrease in Assurant Health was primarily due to a decline in net earned premiums from their small employer group business of $54,896 partially offset by an increase in their individual markets business of $38,408. The decrease in Assurant PreNeed was primarily a result of a decrease in net earned premiums and other considerations of $22,469 and fees and other income of $2,552, partially offset by the increase in net investment income primarily due to $9,409 recognized from a real estate partnership. The decrease in Corporate & other was primarily due to a decrease in realized gains on investments of $15,375 and due to the continued decline in amortization of the deferred gain from the sale of the FFG and LTC businesses of $5,112, offset by the non-recurring loss of $9,232 recognized in May of 2004 on the sale of the Workability division.

Total Expenses

Total expenses decreased by $40,431 or 1%, to $3,371,835 for the six months ended June 30, 2005 from $3,412,266 for the six months ended June 30, 2004. The decrease in total expenses was driven by decreases in Assurant Solutions, Assurant Health, and Assurant PreNeed partially offset by an increase in Assurant Employee Benefits. The decrease in Assurant Solutions was largely driven by a decrease in policyholder benefits of $27,053 primarily attributable to improved loss experience from their Specialty Property businesses and decreased losses associated with the decline in their domestic credit insurance business. This decrease was partially offset by an increase in selling, underwriting and general expenses of $14,449. The decrease in Assurant Health was primarily due to a decrease in their loss ratio of 240 basis points from 64.4% to 62.0%. The decrease in Assurant Preneed was primarily due to a decrease in policyholder benefits of $17,158. The increase in Assurant Employee Benefits was driven by an increase in policyholder benefits of $36,107.

Assurant Solutions

Overview

The tables below present information regarding Assurant Solutions’ segment results of operations:


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2005			2004			2005			2004
	(in thousands)						(in thousands)
Revenues:
Net earned premiums and other considerations	$	636,688		$	610,630		$	1,251,935		$	1,233,695
Net investment income		52,262			44,868			100,427			89,627
Fees and other income		40,938			35,818			77,041			65,025

Total revenues		729,888			691,316			1,429,403			1,388,347

Benefits, losses and expenses:
Policyholder benefits		(221,473	)		(220,215	)		(424,738	)		(451,791	)
Selling, underwriting and general expenses		(420,797	)		(414,387	)		(835,386	)		(820,937	)

Total benefits, losses and expenses		(642,270	)		(634,602	)		(1,260,124	)		(1,272,728	)

Segment income before income tax		87,618			56,714			169,279			115,619
Income taxes		(29,056	)		(18,146	)		(55,947	)		(36,998	)

Segment income after tax	$	58,562		$	38,568		$	113,332		$	78,621

Net earned premiums and other considerations by major product groupings:
Specialty Property Solutions(1)	$	207,723		$	192,755		$	408,841		$	375,736
Consumer Protection Solutions(2)		428,965			417,875			843,094			857,959

Total	$	636,688		$	610,630		$	1,251,935		$	1,233,695

Gross written premiums for selected product groupings: (3)
Domestic Credit	$	194,667		$	211,642		$	385,385		$	448,122
International Credit	$	157,449		$	139,978		$	320,196		$	268,569
Domestic Extended Service Contracts (4)	$	241,035		$	211,684		$	494,284		$	475,017
International Extended Service Contracts (4)	$	50,593		$	11,098		$	98,163		$	21,795
Specialty Property (1)	$	341,298		$	320,717		$	640,655		$	623,790


(1)		“Specialty Property” includes a variety of specialized property insurance programs that are coupled with differentiated administrative capabilities, such as creditor placed and voluntary homeowners, manufactured housing homeowners and other specialty property products.

(2)		“Consumer Protection” includes an array of credit insurance programs and extended service contracts.


(3)		Gross written premium does not necessarily translate to an equal amount of subsequent net earned premium since Assurant Solutions reinsures a portion of its premium to insurance subsidiaries of its clients.

(4)		Extended Service Contracts includes warranty contracts for products such as personal computers, consumer electronics and appliances.

For The Three Months Ended June 30, 2005 Compared to The Three Months Ended June 30, 2004.

Net Income

Segment net income increased by $19,994, or 52%, to $58,562 for the three months ended June 30, 2005 from $38,568 for the three months ended June 30, 2004. The increase in segment income is primarily attributable to improved loss experience and, to a lesser extent, higher net earned premiums in all of our Specialty Property businesses. Growth from our Consumer Protection businesses is also contributing to improved underwriting results, and an increase in fee income and investment income.

Total Revenues

Total revenues increased by $38,572, or 6%, to $729,888 for the three months ended June 30, 2005 from $691,316 for the three months ended June 30, 2004. This increase is primarily due to an increase in net earned premiums and other considerations of $26,058. Net earned premiums and other considerations from our specialty property products increased $14,968 primarily due to an increase in net earned premiums from our creditor-placed homeowners insurance business. Net earned premiums and other considerations from our consumer protection products increased by $11,090, primarily due to higher net earned premiums in our extended service contract and international businesses. This increase was partially offset by the continued decline of our domestic credit insurance business. The increase in revenues was also driven by an increase in net investment income of $7,394. The increase was a result of an increase in the average portfolio yield of 56 basis points to 5.28% for the three months ended June 30, 2005, from 4.72% for the three months ended June 30, 2004 and the average invested assets increased by approximately 4%. Approximately $4,100 of the increase in net investment income was due to a non-recurring item during the second quarter of 2005. The increase in revenues was also driven by an increase in fees and other income of $5,120, or 14%, mainly due to an increase from our debt deferment and extended service contract products.

We experienced steady growth in all of our core product groupings, with the exception of our domestic credit insurance business. Gross written premiums in our domestic credit insurance business decreased by $16,975 due to the continued decline of this product line. Gross written premiums from our international credit business increased by $17,471, primarily due to our focus on international expansion. Gross written premiums in our domestic extended service contract business increased by $29,351, due to the addition of new clients and growth generated from existing clients. Gross written premiums in our international extended service contract business increased by $39,495, primarily due to the signing of a new client in Canada in 2004. Gross written premiums from our specialty property solutions products increased by $20,581, primarily due to growth in our manufactured housing homeowners insurance products.

Total Expenses

Total expenses increased by $7,668, or 1%, to $642,270 for the three months ended June 30, 2005 from $634,602 for the three months ended June 30, 2004. This increase was partly due to an increase in policyholder benefits of $1,258. This small increase, in relation to the related larger increase in net earned premiums, was primarily attributable to improved loss experience from our Specialty Property businesses. Additionally there were decreased losses associated with the decline of our domestic credit insurance business. The majority of the increase in expenses was due to an increase in selling, underwriting and general expenses of $6,410. Commissions, taxes, licenses and fees, of which amortization of DAC is a component, increased by $2,644 primarily due to the associated increase in revenues, partially offset by lower premium taxes attributable to the change in the mix of business. General expenses increased by $3,766, primarily due to higher expenses attributable to general business growth, partially offset by productivity gain initiatives in our credit insurance product line.

For The Six Months Ended June 30, 2005 Compared to The Six Months Ended June 30, 2004.

Net Income

Segment net income increased by $34,711, or 44%, to $113,332 for the six months ended June 30, 2005 from $78,621 for the six months ended June 30, 2004. The increase in segment income is primarily attributable to improved loss experience and, to a lesser extent, higher net earned premiums in all of our Specialty Property businesses. Growth from our Consumer Protection businesses is contributing to an increase in fee income and investment income.

Total Revenues

Total revenues increased by $41,056, or 3%, to $1,429,403 for the six months ended June 30, 2005 from $1,388,347 for the six months ended June 30, 2004. This increase is primarily due to an increase in net earned premiums and other considerations of $18,240. Net earned premiums and other considerations from our specialty property products increased by $33,105, primarily due to an increase in net earned premiums in our creditor-placed homeowners insurance business. Net earned premiums and other considerations from our consumer protection products decreased by $14,865, primarily from the continued decline of our domestic credit insurance business, partially offset by higher net earned premiums in our international business. The increase in revenues was also driven by an increase in net investment income of $10,800. The increase was a result of an increase in the average portfolio yield of 36 basis points to 5.07% for the six months ended June 30, 2005, from 4.71% for the six months ended June 30, 2004 and the average invested assets increased by approximately 4%. The increase in revenues was also driven by an increase in fees and other income of $12,016, or 18%, mainly due to an increase in fees related to growth from debt deferment and extended service contracts products.

We experienced steady growth in all of our core product groupings, with the exception of our domestic credit insurance business. Gross written premiums in our domestic credit insurance business decreased by $62,737 due to the continued decline of this product line. Gross written premiums from our international credit business increased by $51,627 due to our focus on international expansion. Gross written premiums in our domestic extended service contract business increased by $19,267 due to the addition of new clients and growth generated from existing clients. Gross written premiums in our international extended service contract business increased by $76,368, primarily due to the signing of a new client in Canada in 2004. Gross written premiums from our specialty property products increased by $16,865 primarily due to growth in our manufactured housing homeowners insurance products.

Total Expenses

Total expenses decreased by $12,604 or 1%, to $1,260,124 for the six months ended June 30, 2005 from $1,272,728 for the six months ended June 30, 2004. This decrease was largely driven by a decrease in policyholder benefits of $27,053. The decrease was primarily attributable to improved loss experience from our Specialty Property businesses and decreased losses associated with the decline of our domestic credit insurance business. This decrease was partially offset by an increase in selling, underwriting and general expenses of $14,449. Commissions, taxes, licenses and fees, of which amortization of DAC is a component, increased by $12,215 primarily due to the associated increase in revenues, partially offset by lower premium taxes attributable to the change in the mix of business. General expenses increased by $2,234, primarily due to higher expenses attributable to general business growth, partially offset by productivity gain initiatives in our credit insurance product line.

Assurant Health

Overview

The tables below present information regarding Assurant Health’s segment results of operations:


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2005			2004			2005			2004
	(in thousands)						(in thousands)
Revenues:
Net earned premiums and other considerations	$	544,294		$	559,361		$	1,093,820		$	1,110,308
Net investment income		17,170			16,716			34,875			33,663
Fees and other income		10,270			11,035			20,601			20,390

Total revenues		571,734			587,112			1,149,296			1,164,361

Benefits, losses and expenses:
Policyholder benefits		(333,101	)		(358,729	)		(678,469	)		(714,844	)
Selling, underwriting and general expenses		(163,385	)		(167,753	)		(320,148	)		(333,154	)

Total benefits, losses and expenses		(496,486	)		(526,482	)		(998,617	)		(1,047,998	)

Segment income before income tax		75,248			60,630			150,679			116,363
Income taxes		(25,881	)		(20,695	)		(51,639	)		(39,720	)

Segment income after tax	$	49,367		$	39,935		$	99,040		$	76,643

Net earned premiums and other considerations:
Individual markets:
Individual medical	$	290,047		$	272,593		$	577,360		$	536,565
Short term medical		28,115			28,722			53,990			56,377

Subtotal		318,162			301,315			631,350			592,942
Small employer group:		226,132			258,046			462,470			517,366

Total	$	544,294		$	559,361		$	1,093,820		$	1,110,308

Membership by product line:
Individual markets:
Individual medical		662			673			662			673
Short term medical		129			137			129			137

Subtotal		791			810			791			810
Small employer group:		287			367			287			367

Total		1,078			1,177			1,078			1,177

Ratios:
Loss ratio (1)		61.2	%		64.1	%		62.0	%		64.4	%
Expense ratio (2)		29.5	%		29.4	%		28.7	%		29.5	%
Combined ratio (3)		89.5	%		92.3	%		89.6	%		92.7	%


(1)		The loss ratio is equal to policyholder benefits divided by net earned premiums and other considerations.

(2)		The expense ratio is equal to selling, underwriting and general expenses divided by net earned premiums and other considerations and fees and other income.

(3)		The combined ratio is equal to total benefits, losses and expenses divided by net earned premiums and other considerations and fees and other income.

For The Three Months Ended June 30, 2005 Compared to The Three Months Ended June 30, 2004.

Net Income

Segment net income increased by $9,432, or 24%, to $49,367 for the three months ended June 30, 2005, from $39,935 for the three months ended June 30, 2004. The increase in segment income is primarily attributable to an improved loss ratio in our small employer group business, partially offset by a decline in members in both individual markets and small employer group business due to increased competition.

Total Revenues

Total revenues decreased by $15,378, or 3%, to $571,734 for the three months ended June 30, 2005, from $587,112 for the three months ended June 30, 2004. Net earned premiums and other considerations from our individual markets business increased by $16,847 primarily due to premium rate increases partially offset by a decline in members. Net earned premiums and other considerations from our small employer group business decreased by $31,914 due to a decline in members partially offset by premium rate increases. Both individual markets and the small employer group business have experienced decreases in new business written primarily due to increased competition in their respective markets.

Total Expenses

Total expenses decreased by $29,996, or 6%, to $496,486 for the three months ended June 30, 2005, from $526,482 for the three months ended June 30, 2004. The loss ratio decreased by 290 basis points, from 64.1% to 61.2%. The expense ratio increased by 10 basis points, from 29.4% to 29.5%. The decrease in expenses and the loss ratio was largely due to a decrease in policyholder benefits of $25,628 due to the overall decline in members and favorable large claims experience in the small employer group business. The decrease in expenses was also due to a decrease in selling, general and underwriting expenses of $4,368 primarily due to a decline in first year business in 2005 compared to 2004, resulting in decreased commission expense and other acquisition costs in both individual markets and small employer group business

For The Six Months Ended June 30, 2005 Compared to The Six Months Ended June 30, 2004.

Net Income

Segment net income increased by $22,397, or 29%, to $99,040 for the six months ended June 30, 2005, from $76,643 for the six months ended June 30, 2004. The increase in segment income is primarily attributable to an improved loss ratio in our small employer group business, partially offset by a decline in members in both individual markets and small employer group business due to increased competition.

Total Revenues

Total revenues decreased by $15,065, or 1%, to $1,149,296 for the six months ended June 30, 2005, from $1,164,361 for the six months ended June 30, 2004. Net earned premiums and other considerations from our individual markets business increased by $38,408 primarily due to premium rate increases partially offset by a decline in members. Net earned premiums and other considerations from our small employer group business decreased by $54,896 due to a decline in members partially offset by premium rate increases. Both individual markets and the small employer group business have experienced decreases in new business written primarily due to increased competition in their respective markets.

Total Expenses

Total expenses decreased by $49,381, or 5%, to $998,617 for the six months ended June 30, 2005, from $1,047,998 for the six months ended June 30, 2004. The loss ratio decreased by 240 basis points, from 64.4% to 62.0%. The expense ratio decreased by 80 basis points, from 29.5% to 28.7%. The decrease in expenses and the loss ratio was largely due to a decrease in policyholder benefits of $36,375 due to the overall decline in members and favorable large claims experience in the small employer group business. The decrease in expenses was also due to a decrease in selling, general and underwriting expense of $13,006 primarily due to a decline in first year business in 2005 compared to 2004, resulting in decreased

commission expense and other acquisition costs in both individual markets and small employer group business.

Assurant Employee Benefits

Overview

The tables below present information regarding Assurant Employee Benefits’ segment results of operations:


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2005			2004			2005			2004
	(in thousands)						(in thousands)
Revenues:
Net earned premiums and other considerations	$	316,420		$	309,159		$	662,342		$	627,203
Net investment income		38,274			37,437			76,257			73,159
Fees and other income		6,993			6,734			13,182			17,118

Total revenues		361,687			353,330			751,781			717,480

Benefits, losses and expenses:
Policyholder benefits		(241,537	)		(228,842	)		(509,275	)		(473,168	)
Selling, underwriting and general expenses		(105,027	)		(102,737	)		(202,044	)		(202,082	)

Total benefits, losses and expenses		(346,564	)		(331,579	)		(711,319	)		(675,250	)

Segment income before income tax		15,123			21,751			40,462			42,230
Income taxes		(5,311	)		(7,725	)		(14,271	)		(14,954	)

Segment income after tax	$	9,812		$	14,026		$	26,191		$	27,276

Ratios:
Loss ratio (1)		76.3	%		74.0	%		76.9	%		75.4	%
Expense ratio (2)		32.5	%		32.5	%		29.9	%		31.4	%
Net earned premiums and other considerations
By major product grouping:
Group dental	$	128,323		$	130,453		$	256,565		$	261,720
Group disability single premiums for closed blocks (3)		—			—			26,700			13,103
All Other group disability		123,078			114,986			247,855			225,687
Group life		65,019			63,720			131,222			126,693

Total	$	316,420		$	309,159		$	662,342		$	627,203


(1)		The loss ratio is equal to policyholder benefits divided by net earned premiums and other considerations.

(2)		The expense ratio is equal to selling, underwriting and general expenses divided by net earned premiums and other considerations and fees and other income.

(3)		This represents single premium on closed blocks of group disability business.

For The Three Months Ended June 30, 2005 Compared to The Three Months Ended June 30, 2004.

Net Income

Segment net income decreased by $4,214, or 30%, to $9,812 for the three months ended June 30, 2005 from $14,026 for the three months ended June 30, 2004. The decrease in segment income was primarily due to an increase in policyholder benefits driven largely by reduced disability claim closures due to death.

Total Revenues

Total revenues increased by $8,357, or 2%, to $361,687 for the three months ended June 30, 2005 from $353,330 for the three months ended June 30, 2004. Net earned premiums and other considerations increased by $7,261, due to growth in disability business written through alternate distribution sources, as well as increased sales in our group disability and group life products.

Total Expenses

Total expenses increased by $14,985, or 5%, to $346,564 for the three months ended June 30, 2005 from $331,579 for the three months ended June 30, 2004. The loss ratio increased by 230 basis points, from 74.0% to 76.3%. The expense ratio remained unchanged at 32.5%. The increase in expenses and the loss ratio was largely due to an increase in policyholder benefits of $12,695 driven by reduced disability claim closures due to death, and an increase in business written through alternate distribution sources. Also contributing to the increase in expenses was an increase in selling, underwriting and general expenses of $2,290 driven by an increase in technology-related costs, partially offset by lower expenses due to the sale of the Workability division in May 2004.

For The Six Months Ended June 30, 2005 Compared to The Six Months Ended June 30, 2004.

Net Income

Segment net income decreased by $1,085, or 4%, to $26,191 for the six months ended June 30, 2005 from $27,276 for the six months ended June 30, 2004. The decrease in segment income was largely due to an increase in policyholder benefits driven largely by reduced disability claim closures. While disability claim closures due to claimant recovery are similar between 2004 and 2005, closures due to death are lower in 2005. Unfavorable group dental experience as a result of the competitive dental market also contributed to the increase in policyholder benefits, partially offset by favorable development in group life mortality.

Total Revenues

Total revenues increased by $34,301, or 5%, to $751,781 for the six months ended June 30, 2005 from $717,480 for the six months ended June 30, 2004. Net earned premiums and other considerations increased by $35,139, due to growth in disability business written through alternate distribution sources, including an increase of $13,597 for single premiums related to risk for closed blocks of disability business, as well as increased sales in our group disability and group life products. Net investment income increased by $3,098 due to an increase in the average invested assets of approximately 2%, and an increase in the average portfolio yield of 11 basis points to 6.17% for the six months ended June 30, 2005 from 6.06% for the six months ended June 30, 2004. Fees and other income decreased $3,936 due to the sale of the Workability division in May 2004.

Total Expenses

Total expenses increased by $36,069, or 5%, to $711,319 for the six months ended June 30, 2005 from $675,250 for the six months ended June 30, 2004. The loss ratio increased by 150 basis points from 75.4% to 76.9%. The expense ratio decreased by 150 basis points from 31.4% to 29.9%. The increase in expenses and the loss ratio was largely due to an increase in policyholder benefits of $36,107 driven primarily by reduced disability claim closures due to death, and an increase in business written through alternate distribution sources, including an increase of $13,265 due to the assumption of risk related to closed blocks of business. The decrease in the expense ratio was primarily due to level expenses compared to increased net earned premiums. The level expenses are the result of lower expenses in 2005 due to the sale of the Workability division in May 2004 and a non-recurring reduction in short-term incentive compensation in March 2005 partially offset by an increase in technology related costs.

Assurant PreNeed

Overview

The tables below present information regarding Assurant PreNeed’s segment results of operations:


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2005			2004			2005			2004
	(in thousands)						(in thousands)
Revenues:
Net earned premiums and other considerations	$	125,837		$	136,323		$	247,036		$	269,505
Net investment income		62,688			52,469			115,700			102,646
Fees and other income		(196	)		1,494			983			3,535

Total revenues		188,329			190,286			363,719			375,686

Benefits, losses and expenses:
Policyholder benefits		(127,900	)		(135,263	)		(255,053	)		(272,211	)
Selling, underwriting and general expenses		(40,732	)		(39,390	)		(78,263	)		(77,903	)

Total benefits, losses and expenses		(168,632	)		(174,653	)		(333,316	)		(350,114	)

Segment income before income tax		19,697			15,633			30,403			25,572
Income taxes		(6,857	)		(5,494	)		(10,607	)		(8,977	)

Segment income after tax	$	12,840		$	10,139		$	19,796		$	16,595

Net earned premiums and other considerations by channel
AMLIC	$	64,299		$	70,379		$	128,888		$	142,047
Independent-United States		55,353			61,190			106,212			118,608
Independent-Canada		6,185			4,754			11,936			8,850

Total	$	125,837		$	136,323		$	247,036		$	269,505

For The Three Months Ended June 30, 2005 Compared to The Three Months Ended June 30, 2004.

Net Income

Segment income after tax increased by $2,701 or 27% to $12,840 for the three months ended June 30, 2005 from $10,139 for the three months ended June 30, 2004. The increase is principally due to an increase in investment income. During the three months ended June 30, 2005, we recognized $6,116 (after-tax) of additional investment income from a real estate partnership. This increase was partially offset by a decline in the value of the Consumer Price Index (“CPI”) cap, a derivative instrument, an increase in death claim incidence, and higher growth paid on CPI indexed products.

Total Revenues

Total revenues decreased by $1,957, or 1%, to $188,329 for the three months ended June 30, 2005 from $190,286 for the three months ended June 30, 2004. This decrease was primarily a result of a decrease in net earned premiums and other considerations of $10,486 due to a decline in sales of life policies. Sales at AMLIC have declined due to changes in the sales force structure at SCI, AMLIC’s principal customer. Independent-United States sales have declined as a result of continued pricing discipline on certain new business, resulting in the loss of several large customers. Life and annuity sales in Canada increased due to higher sales to national accounts. Additionally, fees and other income decreased $1,690 primarily due to a decline in the value of the CPI cap. These decreases were partially offset by the increase in net investment income primarily due to $9,409 from a real estate partnership.

Total Expenses

Total benefits, losses and expenses decreased by $6,021 or 3%, to $168,632 for the three months ended June 30, 2005 from $174,653 for the three months ended June 30, 2004. This was a result of a decrease in policyholder benefits of $7,363 primarily due to a decline in sales of life policies. This decrease was partially offset by increases in selling, underwriting and general expenses due to higher amortization of deferred acquisition costs.

For The Six Months Ended June 30, 2005 Compared to The Six Months Ended June 30, 2004.

Net Income

Segment income after tax increased by $3,201, or 19% to $19,796 for the six months ended June 30, 2005 from $16,595 for the six months ended June 30, 2004. The increase is principally due to an increase in investment income realized from a real estate partnership. The increase was partially offset by a decline in the value of the CPI cap, an increase in death claim incidence, and higher growth paid on CPI indexed products.

Total Revenues

Total revenues decreased by $11,967 or 3%, to $363,719 for the six months ended June 30, 2005 from $375,686 for the six months ended June 30, 2004. This decrease was primarily a result of a decrease in net earned premiums and other considerations of $22,469 due to a decline in sales of life policies. Sales at AMLIC have declined due to changes in the sales force structure at SCI, AMLIC’s principal customer. Independent-United States sales have declined as a result of continued pricing discipline on certain new business, resulting in the loss of several large customers. Life and annuity sales in Canada increased due to higher sales to national accounts. Additionally, fees and other income decreased $2,552 primarily due to a decline in the value of the CPI cap. These decreases were partially offset by the increase in net investment income primarily due to $9,409 from a real estate partnership. The remaining increase in net investment income is the result of an increase in the average invested assets of approximately 8%, partially offset by a decline in the average portfolio yield (excluding the net proceeds from the real estate joint venture transaction) of 24 basis points. The average portfolio yield decreased to 6.22 % for the six months ended June 30, 2005 from 6.46% for the six months ended June 30, 2004.

Total Expenses

Total benefits, losses and expenses decreased by $16,798, or 5%, to $333,316 for the six months ended June 30, 2005 from $350,114 for the six months ended June 30, 2004. This decrease was primarily due to a decrease in policyholder benefits of $17,158 due to a decline in sales of life policies.

Assurant Corporate & Other

Overview

The Corporate and Other segment includes activities of the holding company, financing expenses, net realized gains (losses) on investments and interest income earned from short-term investments held. The Corporate and Other segment also includes the amortization of deferred gains associated with the sales of Fortis Financial Group (FFG) (a business we sold via reinsurance on April 2, 2001) and Long Term Care (LTC) (a business we sold via reinsurance on March 1, 2000).

The tables below present information regarding Corporate & Other’s segment results of operations:


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2005			2004			2005			2004
	(in thousands)						(in thousands)
Revenues:
Net investment income	$	6,624		$	6,138		$	13,959		$	12,357
Net realized gains on investments		4,079			5,722			4,571			19,946
Amortization of deferred gain on disposal of businesses		11,784			14,262			23,647			28,759
Loss on disposal of businesses		—			(9,232	)		—			(9,232	)
Fees and other income		178			229			281			1,367

Total revenues		22,665			17,119			42,458			53,197

Benefits, losses and expenses:
Selling, underwriting and general expenses		(16,938	)		(11,969	)		(37,831	)		(38,016	)
Interest expense		(15,314	)		(15,834	)		(30,628	)		(25,997	)
Distribution on preferred securities		—			—			—			(2,163	)

Total benefits, losses and expenses.		(32,252	)		(27,803	)		(68,459	)		(66,176	)

Segment loss before income tax		(9,587	)		(10,684	)		(26,001	)		(12,979	)
Income taxes		6,630			3,226			9,664			3,432

Segment loss after tax	$	(2,957	)	$	(7,458	)	$	(16,337	)	$	(9,547	)

For The Three Months Ended June 30, 2005 Compared to The Three Months Ended June 30, 2004.

Net Loss

Segment net loss decreased by $4,501, or 60%, to $2,957 for the three months ended June 30, 2005 from $7,458 for the three months ended June 30, 2004. The decrease in net loss was primarily due to the loss on the sale of our Workability business that was recognized in May of 2004 partially offset by the continued decline in the amortization of deferred gains from the sale of the FFG and LTC businesses.

Total Revenues

Total revenues increased by $5,546, or 32%, to $22,665 for the three months ended June 30, 2005 from $17,119 for the three months ended June 30, 2004. The increase in total revenues was primarily due to the non-recurring loss of $9,232 recognized in May of 2004 on the sale of the Workability division. The increase was partially offset by the continued decline in amortization of the deferred gain from the sale of the FFG and LTC businesses of $2,478 and the decline in net realized gains on investment of $1,643 due to market conditions.

Total Expenses

Total expenses increased by $4,449, or 16%, to $32,252 for the three months ended June 30, 2005 from $27,803 for the three months ended June 30, 2004. The increase in expenses was primarily due to increased compensation expense on stock appreciation rights plans, resulting from growth in our stock price during the period.

For The Six Months Ended June 30, 2005 Compared to The Six Months Ended June 30, 2004.

Net Loss

Segment net loss increased by $6,790, or 71%, to $16,337 for the six months ended June 30, 2005 from $9,547 for the six months ended June 30, 2004. The increase was primarily due to a decrease in realized gains on investments and the continued decline in the amortization of deferred gains from the sale of the FFG and LTC businesses. These declines were partially offset by the non-recurring loss on the sale of our Workability business that was recognized in May 2004.

Total Revenues

Total revenues decreased by $10,739, or 20%, to $42,458 for the six months ended June 30, 2005 from $53,197 for the six months ended June 30, 2004. The decrease in total revenues was primarily due to a decrease in realized gains on investments of $15,375 due to market conditions and the continued decline in amortization of the deferred gain from the sale of the FFG and LTC businesses. These declines were offset by the non-recurring loss of $9,232 recognized in May of 2004 on the sale of the Workability division.

Total Expenses

Total expenses increased by $2,283, or 3%, to $68,459 for the six months ended June 30, 2005 from $66,176 for the six months ended June 30, 2004. The increase in expenses was primarily due to a full six months of interest expense on our long-term debt compared to approximately four months in 2004.

Investments

The following table shows the carrying value of our investments by type of security as of the dates indicated:


	As of				As of
	June 30,				December 31,
	2005				2004
	(in thousands)
Fixed maturities	$	9,426,470	79	%	$	9,122,902	79	%
Equity securities		569,950	5			520,882	4
Commercial mortgage loans on real estate		1,105,074	9			1,053,872	9
Policy loans		63,994	1			64,886	1
Short-term investments		255,321	2			300,093	3
Other investments		556,125	4			550,080	4

Total investments (excluding collateral held under securities lending)	$	11,976,934	100	%	$	11,612,715	100	%

Of our fixed maturity securities shown above, 68% and 67% (based on total fair value) were invested in securities rated “A” or better as of June 30, 2005 and December 31, 2004, respectively.

The following table provides the cumulative net unrealized gains (pre-tax) on fixed maturity securities and equity securities as of the dates indicated:


	As of		As of
	June 30,		December 31,
	2005		2004
	(in thousands)
Fixed maturities:
Amortized cost	$	8,863,773	$	8,625,394
Net unrealized gains		562,697		497,508


	As of		As of
	June 30,		December 31,
	2005		2004
	(in thousands)
Fair value	$	9,426,470	$	9,122,902

Equities:
Cost	$	562,170	$	506,879
Net unrealized gains		7,780		14,003

Fair value	$	569,950	$	520,882

Net unrealized gains on fixed maturity securities increased by $65,189, or 13%, from December 31, 2004 to June 30, 2005. The increase in net unrealized gains on fixed maturities was primarily due to a 30 basis points decrease in the 10 year treasury yields. Net unrealized gains on equity securities decreased by $6,223, or 44%, from December 31, 2004 to June 30, 2005. The decrease in net unrealized gains on equity securities was primarily due to a 1% drop in the market value of preferred securities from December 31, 2004 to June 30, 2005 in the Merrill Lynch Preferred Stock Hybrid Securities Index.

The investment category of the Company’s gross unrealized losses on fixed maturities and equity securities at June 30, 2005 and the length of time the securities have been in an unrealized loss position were as follows (in thousands):


	Less than 12 months					12 Months or More					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
Fixed maturities
Bonds	$	1,183,702	$	(10,737	)	$	222,075	$	(5,205	)	$	1,405,777	$	(15,942	)

Equity securities
Common Stock	$	—	$	—		$	26	$	(52	)	$	26	$	(52	)
Non-redeemable preferred stocks		146,105		(2,542	)		44,007		(1,867	)		190,112		(4,409	)

Total equity securities	$	146,105	$	(2,542	)	$	44,033	$	(1,919	)	$	190,138	$	(4,461	)

The total unrealized loss represents less than 2% of the aggregate fair value of the related securities. Approximately 65% of these unrealized losses have been in a continuous loss position for less than twelve months. The total unrealized losses are comprised of 650 individual securities with 98% of the individual securities having an unrealized loss of less than $200. The total unrealized losses on securities that were in a continuous unrealized loss position for greater than six months but less than 12 months were approximately $5,062, with no security with a unrealized loss of greater than $200 having a market value below 83% of book value.

As part of our ongoing monitoring process, we regularly review our investment portfolio to ensure that investments that may be other than temporarily impaired are identified on a timely basis fashion and that any impairment is charged against earnings in the proper period. We have reviewed these securities and record $900 and $817 of additional other than temporary impairments as of June 30, 2005 and June 30, 2004, respectively. Due to issuers’ continued satisfaction of the securities’ obligations in accordance with their contractual terms and their continued expectations to do so, as well as our evaluation of the fundamentals of the issuers’ financial condition, we believe that the prices of the securities in an unrealized loss position as of June 30, 2005 in the sectors discussed above were temporarily depressed primarily as a result of the prevailing level of interest rates at the time the securities were purchased.

Net investment income increased by $19,390, or 12.3%, to $177,018 for the three months ended June 30, 2005 from $157,628 for the three months ended June 30, 2004 and increased by $29,766, or 9.6%, to $341,218 for the six months ended June 30, 2005 from $311,452 for the six months ended June 30, 2004. The increases were primarily due to an increase in invested assets and investment yields. The average portfolio yield increased by 6 basis points to 5.63% for the three months ended June 30, 2005 from 5.57% for the three months ended June 30, 2004 and increased by 9 basis points to 5.57% for the six months ended June 30, 2005 from 5.48% for the six months ended June 30, 2004. The average invested assets increased by approximately 5% for the same periods year over year.

Liquidity and Capital Resources

Assurant, Inc. is a holding company, and as such, has limited direct operations of its own. Our holding company assets consist primarily of the capital stock of our subsidiaries. Accordingly, our future cash flows depend upon the availability of dividends and other statutorily permissible payments from our subsidiaries, such as payments under our tax allocation agreement and under management agreements with our subsidiaries. The ability to pay such dividends and to make such other payments will be limited by applicable laws and regulations of the states in which our subsidiaries are domiciled, which subject our subsidiaries to significant regulatory restrictions. The dividend requirements and regulations vary from state to state and by type of insurance provided by the applicable subsidiary. These laws and regulations require, among other things, our insurance subsidiaries to maintain minimum solvency requirements and limit the amount of dividends these subsidiaries can pay to the holding company. Solvency regulations, capital requirements and rating agencies are some of the factors used in determining the amount of capital used for dividends. For 2005, the maximum amount of distributions our subsidiaries could pay under applicable laws and regulations without prior regulatory approval is approximately $364,000.

Dividends paid by our subsidiaries were $94,800 and $361,730 for the six months ended June 30, 2005, and for the year ended December 31, 2004, respectively. We use these cash inflows primarily to pay expenses, to make interest payments on indebtedness, to make dividend payments to our stockholders, and to repurchase our outstanding shares.

The primary sources of funds for our subsidiaries consist of premiums and fees collected, the proceeds from the sales and maturity of investments and investment income. Cash is primarily used to pay insurance claims, agent commissions, operating expenses and taxes. We generally invest our subsidiaries’ excess funds in order to generate income.

On August 12, 2005, the Company announced that the Board of Directors declared a quarterly dividend of $0.08 per common share. The dividend will be payable on September 7, 2005 to shareholders of record as of August 23, 2005. We paid dividends of $0.07 per common share on March 14, 2005 to shareholders of record as of February 28, 2005. We also paid dividends of $0.08 per common share on June 7, 2005, to shareholders of record as of May 23, 2005. Any determination to pay future dividends will be at the discretion of our board of directors and will be dependent upon: our subsidiaries’ payment of dividends and/or other statutorily permissible payments to us; our results of operations and cash flows; our financial position and capital requirements; general business conditions; any legal, tax, regulatory and contractual restrictions on the payment of dividends; and any other factors our board of directors deems relevant.

Our qualified pension plan was under-funded by $57,400 at December 31, 2004. We contributed $40,000 as of March 31, 2005 and reduced the under-funded status of our qualified pension plan. We do not expect to make any additional contributions for the remainder of 2005. See Note 7 of Notes to the Consolidated Unaudited Interim Financial Statements included elsewhere in this report for the components of the net periodic benefit cost for the three and six months ended June 30, 2005 and 2004.

The Company maintains a $500,000 commercial paper program, which is available for working capital and other general corporate purposes. Our subsidiaries do not maintain commercial paper or other borrowing facilities at their level. This program is backed up by a $500,000 senior revolving credit facility with a syndicate of banks arranged by J.P. Morgan Securities, Inc. (successor by merger to Banc One Capital Markets, Inc.) and Citigroup Global Market, Inc., which was established on January 30, 2004. In April 2005, we amended and restated our $500,000 senior revolving credit facility with a syndicate of banks arranged by Citibank and JP Morgan Chase Bank. The amended and restated credit facility is unsecured and is available until April 2010, so long as the Company is in compliance with all the covenants. This facility is also available for general corporate purposes, but to the extent used thereto, would be unavailable to back up the commercial paper program. There were no amounts relating to the commercial paper program outstanding at June 30, 2005. We did not use the revolving credit facility during the six months ended June 30, 2005 and no amounts are outstanding.

The revolving credit facility contains restrictive covenants. The terms of the revolving credit facility also require that we maintain certain specified minimum ratios or thresholds. We are in compliance with all covenants and we maintain all specified minimum ratios and thresholds.

On February 18, 2004, we issued two series of senior notes in an aggregate principal amount of $975,000. The first series is $500,000 in principal amount, bears interest at 5.625% per year and is payable in a single installment due February 15, 2014. The second series is $475,000 in principal amount, bears interest at 6.750% per year and is payable in a single installment due February 15, 2034.

Interest on our senior notes is payable semi-annually on February 15 and August 15 of each year. The senior notes are our unsecured obligations and rank equally with all of our other senior unsecured indebtedness. The senior notes are not redeemable prior to maturity.

In management’s opinion, our subsidiaries’ cash flow from operations together with our income and gains from our investment portfolio will provide sufficient liquidity to meet our needs in the ordinary course of business.

Cash Flows

We monitor cash flows at both the consolidated and subsidiary levels. Cash flow forecasts at the consolidated and subsidiary levels are provided on a monthly basis, and we use trend and variance analyses to project future cash needs.

The table below shows our recent net cash flows:


	For The Six Months
	Ended June 30,
	2005			2004
	(in thousands)
Net cash provided by (used in):
Operating activities	$	194,610		$	313,359
Investing activities		(408,182	)		(520,955	)
Financing activities		(92,740	)		(141,731	)

Net change in cash	$	(306,312	)	$	(349,327	)

Operating activities:

The key changes of the net cash inflow of $194,610 for the six months ended June 30, 2005 compared to net cash inflow of $313,359 for the six months ended June 30, 2004 were changes in DAC and policy reserves. We prepare our operating cash flow statement under the indirect method.

Investing Activities:

The key changes of the net cash outflow of $408,182 for the six months ended June 30, 2005 compared to net cash outflow of $520,955 for the six months ended June 30, 2004 were primarily due to net purchases of fixed maturity securities of $685,746 for 2005 compared to $523,594 in 2004, maturities of fixed maturity securities of $420,103 in 2005 compared to $393,978 in 2004, and a change in collateral held under securities lending of $46,611 in 2005 compared to $118,221 in 2004.


		Page
		Number

1.	Financial Statements		2
	Assurant, Inc. and Subsidiaries Consolidated Balance Sheets at June 30, 2005 (unaudited) and December 31, 2004		2
	Assurant, Inc. and Subsidiaries Consolidated Statement of Operations for the three and six months ended June 30, 2005 and 2004 (unaudited)		4
	Assurant, Inc. and Subsidiaries Consolidated Statement of Changes in Stockholders’ Equity from December 31, 2004 through June 30, 2005 (unaudited)		5
	Assurant, Inc. and Subsidiaries Consolidated Statement of Cash Flows for the six months ended June 30, 2005 and 2004 (unaudited)		6
	Assurant, Inc. and Subsidiaries Notes to Consolidated Financial Statements for the six months ended June 30, 2005 and 2004 (unaudited)		7

2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		18


							Maximum Number
					Total Number of Shares		of Shares that
					Purchased as Part of		may yet be
Period	Number of		Average Price		Publicly Announced		Purchased under
in 2005	Shares Purchased		Paid Per Share		Program		the Program
January		—		—		—		11,815,311
February		68,400		34.37		60,000		11,755,311
March		651,900		34.13		650,000		11,105,311
April		1,050,300		33.26		1,050,000		10,055,311
May		701,400		33.75		699,200		9,356,111
June		1,048,400		35.76		1,048,300		8,307,811

Total		3,520,400	$	34.28		3,507,500

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	For the Six Months Ended
	June 30,
Security	2005		2004
	(in thousands)
Mandatorily redeemable preferred securities of subsidiary trusts	$	—	$	2,163
Mandatorily redeemable preferred stock dividends and interest paid		30,590		3,686
Common Stock dividends		20,800		9,959

Total	$	51,390	$	15,808