10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2014

OR 

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Assurant, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-31978	39-1126612
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

One Chase Manhattan Plaza, 41st Floor

New York, New York 10005

(212) 859-7000

(Address, including zip code, and telephone number, including area code, of Registrant’s Principal Executive Offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  x    NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  x

The number of shares of the registrant’s Common Stock outstanding at October 30, 2014 was 70,255,038.

ASSURANT, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2014

TABLE OF CONTENTS

Item Number		Page Number
	PART I FINANCIAL INFORMATION
1.	Financial Statements of Assurant, Inc.:
	Consolidated Balance Sheets (unaudited) at September 30, 2014 and December 31, 2013		2
	Consolidated Statements of Operations (unaudited) for the three and nine months ended September  30, 2014 and 2013		4
	Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended September 30, 2014 and 2013		5
	Consolidated Statement of Changes in Stockholders’ Equity (unaudited) from December 31, 2013 through September 30, 2014		6
	Consolidated Statements of Cash Flows (unaudited) for the nine months ended September  30, 2014 and 2013		7
	Notes to Consolidated Financial Statements (unaudited) for the three and nine months ended September 30, 2014 and 2013		8
2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		44
3.	Quantitative and Qualitative Disclosures About Market Risk		65
4.	Controls and Procedures		65
	PART II OTHER INFORMATION
1.	Legal Proceedings		66
1A.	Risk Factors		66
2.	Unregistered Sales of Equity Securities and Use of Proceeds		68
6.	Exhibits		69
	Signatures		70

Amounts are presented in United States of America (“U.S.”) dollars and all amounts are in thousands, except number of shares and per share amounts.

1

Assurant, Inc.

Consolidated Balance Sheets (unaudited)

At September 30, 2014 and December 31, 2013

	September 30, 2014		December 31, 2013
	(in thousands except number of shares and per share amounts)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost - $10,482,812 in 2014 and $10,520,310 in 2013)	$	11,624,009	$	11,291,875
Equity securities available for sale, at fair value (cost - $458,965 in 2014 and $417,535 in 2013)		521,707		458,358
Commercial mortgage loans on real estate, at amortized cost		1,253,424		1,287,032
Policy loans		48,979		51,678
Short-term investments		465,295		470,458
Collateral held/pledged under securities agreements		95,977		95,215
Other investments		599,423		589,399
Total investments		14,608,814		14,244,015
Cash and cash equivalents		1,411,266		1,717,184
Premiums and accounts receivable, net		1,340,200		1,080,171
Reinsurance recoverables		6,149,708		5,752,134
Accrued investment income		151,108		145,189
Deferred acquisition costs		3,277,810		3,128,931
Property and equipment, at cost less accumulated depreciation		274,419		253,630
Goodwill		816,818		784,561
Value of business acquired		47,492		53,549
Other intangible assets, net		369,021		354,636
Other assets		354,382		258,942
Assets held in separate accounts		1,872,091		1,941,747
Total assets	$	30,673,129	$	29,714,689

See the accompanying notes to the consolidated financial statements

2

Assurant, Inc.

Consolidated Balance Sheets (unaudited)

At September 30, 2014 and December 31, 2013

	September 30, 2014			December 31, 2013
	(in thousands except number of shares and per share amounts)
Liabilities
Future policy benefits and expenses	$	8,813,702		$	8,646,572
Unearned premiums		6,784,089			6,662,672
Claims and benefits payable		3,577,964			3,389,371
Commissions payable		596,990			429,636
Reinsurance balances payable		110,507			106,932
Funds held under reinsurance		78,707			76,778
Deferred gain on disposal of businesses		88,362			99,311
Obligation under securities agreements		95,973			95,206
Accounts payable and other liabilities		1,793,509			1,662,348
Deferred income taxes, net		323,073			129,148
Tax payable		24,594			3,371
Debt		1,171,005			1,638,118
Liabilities related to separate accounts		1,872,091			1,941,747
Total liabilities		25,330,566			24,881,210
Commitments and contingencies (Note 14)
Stockholders’ equity
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 70,809,613 and 71,828,208 shares outstanding at September 30, 2014 and December 31, 2013, respectively		1,490			1,482
Additional paid-in capital		3,117,645			3,087,533
Retained earnings		4,778,645			4,415,875
Accumulated other comprehensive income		659,746			426,830
Treasury stock, at cost; 77,803,252 and 76,039,652 shares at September 30, 2014 and December 31, 2013, respectively		(3,214,963	)		(3,098,241	)
Total stockholders’ equity		5,342,563			4,833,479
Total liabilities and stockholders’ equity	$	30,673,129		$	29,714,689

See the accompanying notes to the consolidated financial statements

3

Assurant, Inc.

Consolidated Statements of Operations (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014			2013
	(in thousands except number of shares and per share amounts)
Revenues
Net earned premiums	$	2,257,809	$	1,947,431		$	6,490,005		$	5,714,293
Net investment income		162,009		159,209			497,575			489,118
Net realized gains (losses) on investments, excluding other-than-temporary impairment losses		17,744		(2,429	)		43,612			31,573
Total other-than-temporary impairment losses		—		(1,230	)		(69	)		(1,409	)
Portion of net loss recognized in other comprehensive income, before taxes		—		28			39			100
Net other-than-temporary impairment losses recognized in earnings		—		(1,202	)		(30	)		(1,309	)
Amortization of deferred gain on disposal of businesses		3,645		4,074			10,949			12,238
Fees and other income		261,281		151,567			716,850			401,126
Total revenues		2,702,488		2,258,650			7,758,961			6,647,039
Benefits, losses and expenses
Policyholder benefits		1,123,693		933,832			3,281,338			2,708,143
Amortization of deferred acquisition costs and value of business acquired		386,709		372,750			1,098,080			1,101,998
Underwriting, general and administrative expenses		953,559		737,326			2,681,135			2,168,367
Interest expense		13,776		20,771			44,617			57,369
Total benefits, losses and expenses		2,477,737		2,064,679			7,105,170			6,035,877
Income before provision for income taxes		224,751		193,971			653,791			611,162
Provision for income taxes		84,454		65,183			232,639			231,071
Net income	$	140,297	$	128,788		$	421,152		$	380,091
Earnings Per Share
Basic	$	1.94	$	1.70		$	5.80		$	4.89
Diluted	$	1.92	$	1.68		$	5.74		$	4.84
Dividends per share	$	0.27	$	0.25		$	0.79		$	0.71
Share Data
Weighted average shares outstanding used in basic per share calculations		72,182,547		75,544,542			72,561,191			77,662,796
Plus: Dilutive securities		864,157		915,249			866,171			899,205
Weighted average shares used in diluted per share calculations		73,046,704		76,459,791			73,427,362			78,562,001

See the accompanying notes to the consolidated financial statements

4

Assurant, Inc.

Consolidated Statements of Comprehensive Income (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(in thousands)
Net income	$	140,297		$	128,788		$	421,152		$	380,091
Other comprehensive (loss) income:
Change in unrealized gains on securities, net of taxes of $27,439, $21,164, $(129,418) and $220,190, respectively		(51,617	)		(43,305	)		259,350			(431,554	)
Change in other-than-temporary impairment gains, net of taxes of $48, $(150), $(1,236) and $(1,064), respectively		(89	)		279			2,295			1,976
Change in foreign currency translation, net of taxes of $(10,957), $(1,627), $1,396 and $4,178, respectively		(54,264	)		5,578			(34,434	)		(28,653	)
Amortization of pension and postretirement unrecognized net periodic benefit cost, net of taxes of $(885), $(1,748), $(3,073) and $(7,610), respectively		1,644			3,246			5,705			14,134
Total other comprehensive (loss) income		(104,326	)		(34,202	)		232,916			(444,097	)
Total comprehensive income (loss)	$	35,971		$	94,586		$	654,068		$	(64,006	)

See the accompanying notes to the consolidated financial statements

5

Assurant, Inc.

Consolidated Statement of Stockholders’ Equity (unaudited)

From December 31, 2013 through September 30, 2014

	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income		Treasury Stock			Total
	(in thousands)
Balance at December 31, 2013	$	1,482	$	3,087,533		$	4,415,875		$	426,830	$	(3,098,241	)	$	4,833,479
Stock plan exercises		8		(19,290	)		—			—		—			(19,282	)
Stock plan compensation expense		—		35,015			—			—		—			35,015
Change in tax benefit from share-based payment arrangements		—		14,387			—			—		—			14,387
Dividends		—		—			(58,382	)		—		—			(58,382	)
Acquisition of common stock		—		—			—			—		(116,722	)		(116,722	)
Net income		—		—			421,152			—		—			421,152
Other comprehensive income		—		—			—			232,916		—			232,916
Balance, September 30, 2014	$	1,490	$	3,117,645		$	4,778,645		$	659,746	$	(3,214,963	)	$	5,342,563

See the accompanying notes to the consolidated financial statements

6

Assurant, Inc.

Consolidated Statements of Cash Flows (unaudited)

Nine Months Ended September 30, 2014 and 2013

	Nine Months Ended September 30,
	2014			2013
	(in thousands)
Net cash provided by operating activities	$	514,664		$	724,038
Investing activities
Sales of:
Fixed maturity securities available for sale		1,288,291			1,814,687
Equity securities available for sale		83,488			173,499
Other invested assets		60,598			42,312
Property and equipment and other		173			154
Maturities, calls, prepayments, and scheduled redemption of:
Fixed maturity securities available for sale		585,263			695,398
Commercial mortgage loans on real estate		119,085			150,920
Purchases of:
Fixed maturity securities available for sale		(1,877,572	)		(2,446,127	)
Equity securities available for sale		(122,071	)		(168,097	)
Commercial mortgage loans on real estate		(88,531	)		(109,504	)
Other invested assets		(28,402	)		(37,524	)
Property and equipment and other		(58,879	)		(33,519	)
Subsidiaries, net of cash transferred (1)		(88,155	)		(49,987	)
Equity interest (2)		(20,950	)		—
Change in short-term investments		2,326			(673,579	)
Change in policy loans		2,576			823
Change in collateral held/pledged under securities agreements		(768	)		(1,047	)
Net cash used in investing activities		(143,528	)		(641,591	)
Financing activities
Issuance of debt		—			698,093
Repayment of debt		(467,330	)		(32,310	)
Change in tax benefit from share-based payment arrangements		14,387			(1,724	)
Acquisition of common stock		(115,866	)		(299,624	)
Dividends paid		(58,382	)		(55,777	)
Payment of contingent obligations (3)		(31,871	)		—
Change in obligation under securities agreements		768			1,047
Net cash (used in) provided by financing activities		(658,294	)		309,705
Effect of exchange rate changes on cash and cash equivalents		(18,760	)		(14,859	)
Change in cash and cash equivalents		(305,918	)		377,293
Cash and cash equivalents at beginning of period		1,717,184			909,404
Cash and cash equivalents at end of period	$	1,411,266		$	1,286,697

(1) 2014 includes the acquisitions of StreetLinks, LLC and eMortgage Logic, LLC. 2013 includes the acquisition of Field Asset Services.

(2) Relates to the purchase of equity interest in Iké Asistencia.

(3) Relates to the delayed and contingent liability payments established at the time of acquisition of Lifestyle Services Group. Change in amount paid, in comparison to December 31, 2013 amount disclosed, is mainly due to foreign currency translation.

See the accompanying notes to the consolidated financial statements

7

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

1. Nature of Operations

Assurant, Inc. (the “Company”) is a holding company whose subsidiaries provide specialized insurance products and related services in North America, Latin America, Europe and other select worldwide markets.

The Company is traded on the New York Stock Exchange under the symbol “AIZ”.

Through its operating subsidiaries, the Company provides mobile device protection, debt protection administration, credit-related insurance, warranties and service contracts, pre-funded funeral insurance, lender-placed homeowners insurance, property, appraisal, preservation and valuation services, renters insurance and related products, manufactured housing homeowners insurance, individual health and small employer group health insurance, group dental insurance, group disability insurance, and group life 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 GAAP for complete financial statements.

The interim financial data as of September 30, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014 and 2013 is unaudited; in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary to a fair statement of the results for the interim periods. The unaudited interim 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.

The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, and the rules and regulations thereunder (together, the “Affordable Care Act”) introduced new and significant premium stabilization programs in 2014. These programs required the Company to record amounts to our consolidated financial statements based on assumptions and estimates which could materially change as experience develops.

Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The accompanying unaudited 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, 2013.

3. Recent Accounting Pronouncements

Adopted

On January 1, 2014, the Company adopted the new guidance on presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this guidance state that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. An exception to this guidance would be where a net operating loss carryforward or similar tax loss or credit carryforward would not be available under the tax law to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. In such a case, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of this new presentation guidance did not impact the Company’s financial position or results of operations.

On January 1, 2014, the Company adopted the other expenses guidance that addresses how health insurers should recognize and classify in their statements of operations fees mandated by the Affordable Care Act. The Affordable Care Act imposes an annual fee on health insurers for each calendar year beginning on or after January 1, 2014. The amendments specify that the liability for the fee should be estimated and recorded in full once the entity provides qualifying health insurance in the applicable calendar year in which the fee is payable with a corresponding deferred cost that is amortized to expense ratably over the calendar year during which it is payable. The Company’s adoption of this guidance impacts the results of our Assurant

8

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

Health and Assurant Employee Benefits segments. During the third quarter of 2014, the final assessment of the annual insurer fee of $25,723 was paid to the federal government. As a result of this payment, the estimated liability for the mandated fees was reduced to $0. For the nine months ended September 30, 2014, the Company recorded $19,292 of amortization expense related to the deferred costs in underwriting, general and administrative expenses in the consolidated statements of operations, resulting in an ending balance in deferred costs, recorded in other assets on the consolidated balance sheet, of $6,431 as of September 30, 2014.

Not Yet Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance on revenue recognition. The amended guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. Insurance contracts are within the scope of other standards and therefore are specifically excluded from the scope of the amended revenue recognition guidance. The core principle of the amended guidance is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle, the entity applies a five step process outlined in the amended guidance. The amended guidance also includes a cohesive set of disclosure requirements. The amended guidance is effective for interim and annual periods beginning after December 15, 2016 and early adoption is not permitted. Therefore, the Company is required to adopt the guidance on January 1, 2017. An entity can choose to apply the amended guidance using either the full retrospective approach or a modified retrospective approach. The Company is currently evaluating the requirements of the revenue recognition guidance as it relates to its non-insurance contract revenue and the potential impact on the Company’s financial position and results of operations.

4. Acquisitions

As previously disclosed, on December 30, 2013, the Company paid Mex$1,191,499 (U.S.D. $91,420) for a 40% investment in the Mexican operations of Iké Asistencia (“Iké”), an assistance services business with operations in Mexico and other countries in Latin America. In addition, on February 10, 2014, the Company made a previously disclosed payment of Mex$272,541 (U.S.D. $20,950) for 40% of Iké’s Latin American operations. Following the February 10, 2014 payment, the Company owns 40% of the equity interests and outstanding shares of Iké and, under the terms of the agreements, will also have options to acquire the remaining interest in Iké over time.

On March 24, 2014, the Company made the required delayed payment of £3,000 ($4,951) and contingent payment of £16,313 ($26,920) to complete the previously disclosed October 25, 2013 acquisition of Lifestyle Services Group. The contingent payment was made given the stipulated contractual renewal of a key client.

On April 16, 2014, the Company acquired StreetLinks, LLC, a leading independent appraisal management company, from Novation Companies, Inc. The acquisition-date fair value of the consideration transferred totaled $65,905, which consists of an initial cash payment of $60,905 and a contingent payment of $5,000. The contingent consideration arrangement is based on future expected revenue. In connection with the acquisition, the Company recorded $47,970 of customer and technology based intangible assets, all of which are amortizable over a 2 to 12 year period, and $14,738 of goodwill, none of which is tax-deductible. The primary factor contributing to the recognition of goodwill is the future expected growth of this business within Assurant Specialty Property.

On September 3, 2014, the Company acquired eMortgage Logic, LLC, a national provider of residential valuation products and valuation technology services. The acquisition-date fair value totaled $28,263, which primarily consists of an initial cash payment of $17,000 and a contingent payment of $10,231. The contingent consideration arrangement is based on future expected revenue. In connection with the acquisition, the Company recorded $11,270 of customer and technology based intangible assets, all of which are amortizable over a 3 to 11 year period, and $14,058 of goodwill, all of which is tax-deductible. The primary factor contributing to the recognition of goodwill is the future expected growth of this business within Assurant Specialty Property.

9

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

5. Investments

The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairment (“OTTI”) of our fixed maturity and equity securities as of the dates indicated:

	September 30, 2014
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		OTTI in AOCI (a)
Fixed maturity securities:
United States government and government agencies and authorities	$	172,994	$	5,053	$	(639	)	$	177,408	$	—
States, municipalities and political subdivisions		758,072		72,812		(517	)		830,367		—
Foreign governments		610,000		60,062		(1,706	)		668,356		—
Asset-backed		4,061		1,729		(32	)		5,758		1,620
Commercial mortgage-backed		56,527		1,534		—			58,061		—
Residential mortgage-backed		949,236		51,815		(3,446	)		997,605		19,404
Corporate		7,931,922		966,302		(11,770	)		8,886,454		23,163
Total fixed maturity securities	$	10,482,812	$	1,159,307	$	(18,110	)	$	11,624,009	$	44,187
Equity securities:
Common stocks	$	21,129	$	13,743	$	(49	)	$	34,823	$	—
Non-redeemable preferred stocks		437,836		51,485		(2,437	)		486,884		—
Total equity securities	$	458,965	$	65,228	$	(2,486	)	$	521,707	$	—
	December 31, 2013
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		OTTI in AOCI (a)
Fixed maturity securities:
United States government and government agencies and authorities	$	408,378	$	4,166	$	(1,888	)	$	410,656	$	—
States, municipalities and political subdivisions		774,233		63,543		(2,624	)		835,152		—
Foreign governments		647,486		35,543		(7,608	)		675,421		—
Asset-backed		4,320		1,910		(56	)		6,174		1,773
Commercial mortgage-backed		57,594		2,850		(82	)		60,362		—
Residential mortgage-backed		919,216		41,905		(13,217	)		947,904		19,525
Corporate		7,709,083		684,776		(37,653	)		8,356,206		19,359
Total fixed maturity securities	$	10,520,310	$	834,693	$	(63,128	)	$	11,291,875	$	40,657
Equity securities:
Common stocks	$	17,890	$	11,352	$	(10	)	$	29,232	$	—
Non-redeemable preferred stocks		399,645		38,880		(9,399	)		429,126		—
Total equity securities	$	417,535	$	50,232	$	(9,409	)	$	458,358	$	—

(a) Represents the amount of OTTI recognized in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

10

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

Our states, municipalities and political subdivisions holdings are highly diversified across the U.S. and Puerto Rico, with no individual state’s exposure (including both general obligation and revenue securities) exceeding 0.5% of the overall investment portfolio as of September 30, 2014 and December 31, 2013. At September 30, 2014 and December 31, 2013, the securities include general obligation and revenue bonds issued by states, cities, counties, school districts and similar issuers, including $275,657 and $234,640, respectively, of advance refunded or escrowed-to-maturity bonds (collectively referred to as “pre-refunded bonds”), which are bonds for which an irrevocable trust has been established to fund the remaining payments of principal and interest. As of September 30, 2014 and December 31, 2013, revenue bonds account for 51% and 53% of the holdings, respectively. Excluding pre-refunded revenue bonds, the activities supporting the income streams of the Company’s revenue bonds are across a broad range of sectors, primarily highway, water, airport and marina, higher education, specifically pledged tax revenues, and other miscellaneous sources such as bond banks, finance authorities and appropriations.

The Company’s investments in foreign government fixed maturity securities are held mainly in countries and currencies where the Company has policyholder liabilities, which allow the assets and liabilities to be more appropriately matched. At September 30, 2014, approximately 74%, 11% and 5% of the foreign government securities were held in the Canadian government/provincials and the governments of Brazil and Germany, respectively. At December 31, 2013, approximately 70%, 15% and 6% of the foreign government securities were held in the Canadian government/provincials and the governments of Brazil and Germany, respectively. No other country represented more than 3% of our foreign government securities as of September 30, 2014 and December 31, 2013.

The Company has European investment exposure in its corporate fixed maturity and equity securities of $1,075,379 with an unrealized gain of $108,088 at September 30, 2014 and $1,082,129 with an unrealized gain of $78,126 at December 31, 2013. Approximately 23% and 25% of the corporate European exposure is held in the financial industry at September 30, 2014 and December 31, 2013, respectively. Our largest European country exposure represented approximately 5% and 6% of the fair value of our corporate securities as of September 30, 2014 and December 31, 2013, respectively. Approximately 5% of the fair value of the corporate European securities are pound and euro-denominated and are not hedged to U.S. dollars, but held to support those foreign-denominated liabilities. Our international investments are managed as part of our overall portfolio with the same approach to risk management and focus on diversification.

The cost or amortized cost and fair value of fixed maturity securities at September 30, 2014 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

	Cost or Amortized Cost		Fair Value
Due in one year or less	$	339,714	$	344,017
Due after one year through five years		2,437,561		2,571,729
Due after five years through ten years		2,690,101		2,832,899
Due after ten years		4,005,612		4,813,940
Total		9,472,988		10,562,585
Asset-backed		4,061		5,758
Commercial mortgage-backed		56,527		58,061
Residential mortgage-backed		949,236		997,605
Total	$	10,482,812	$	11,624,009

11

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

The following table summarizes the proceeds from sales of available-for-sale securities and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Proceeds from sales	$	401,627	$	525,996	$	1,403,671	$	2,028,274
Gross realized gains		18,109		9,865		49,696		46,290
Gross realized losses		1,607		12,339		8,174		23,391

The following table sets forth the net realized gains (losses), including OTTI, recognized in the statement of operations as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Net realized gains (losses) related to sales and other:
Fixed maturity securities	$	17,848		$	(2,232	)	$	39,538		$	20,215
Equity securities		(149	)		82			4,988			4,753
Other investments		45			(279	)		(914	)		6,605
Total net realized gains (losses) related to sales and other		17,744			(2,429	)		43,612			31,573
Net realized losses related to other-than-temporary impairments:
Fixed maturity securities		—			(660	)		(30	)		(767	)
Other investments		—			(542	)		—			(542	)
Total net realized losses related to other-than-temporary impairments		—			(1,202	)		(30	)		(1,309	)
Total net realized gains (losses)	$	17,744		$	(3,631	)	$	43,582		$	30,264

Other-Than-Temporary Impairments

The Company follows the OTTI guidance which requires entities to separate an OTTI of a debt security into two components when there are credit related losses associated with the impaired debt security for which the Company asserts that it does not have the intent to sell, and it is more likely than not that it will not be required to sell before recovery of its cost basis. Under the OTTI guidance, the amount of the OTTI related to a credit loss is recognized in earnings, and the amount of the OTTI related to other, non-credit factors (e.g., interest rates, market conditions, etc.) is recorded as a component of other comprehensive income. In instances where no credit loss exists but the Company intends to sell the security or it is more likely than not that the Company will have to sell the debt security prior to the anticipated recovery, the decline in market value below amortized cost is recognized as an OTTI in earnings. In periods after the recognition of an OTTI on debt securities, the Company accounts for such securities as if they had been purchased on the measurement date of the OTTI at an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in earnings. For debt securities for which OTTI was recognized in earnings, the difference between the new amortized cost basis and the cash flows expected to be collected will be accreted or amortized into net investment income.

There was no OTTI for the three months ended September 30, 2014. For the nine months ended September 30, 2014, the Company recorded $69 of OTTI, of which $30 was related to credit losses and recorded as net OTTI losses recognized in earnings, with the remaining $39 related to all other factors and recorded as an unrealized loss component of AOCI. For the three and nine months ended September 30, 2013, the Company recorded $1,230 and $1,409, respectively, of OTTI, of which $1,202 and $1,309, respectively, was related to credit losses and recorded as net OTTI losses recognized in earnings, with the remaining $28 and $100, respectively, related to all other factors and recorded as an unrealized loss component of AOCI.

12

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

The following tables set forth the amount of credit loss impairments recognized within the results of operations on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in AOCI, and the corresponding changes in such amounts.

	Three Months Ended September 30,
	2014			2013
Balance, June 30,	$	39,248		$	93,745
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security		(506	)		(597	)
Reductions for credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period		(1,662	)		(190	)
Balance, September 30,	$	37,080		$	92,958
	Nine Months Ended September 30,
	2014			2013
Balance, January 1,	$	45,278		$	95,589
Additions for credit loss impairments recognized in the current period on securities previously impaired		30			107
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security		(3,151	)		(1,465	)
Reductions for credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period		(5,077	)		(1,273	)
Balance, September 30,	$	37,080		$	92,958

We regularly monitor our investment portfolio to ensure investments that may be other-than-temporarily impaired are identified in a timely fashion, properly valued, and charged against earnings in the proper period. The determination that a security has incurred an other-than-temporary decline in value requires the judgment of management. Assessment factors include, but are not limited to, the length of time and the extent to which the market value has been less than cost, the financial condition and rating of the issuer, whether any collateral is held, the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery for equity securities and the intent to sell or whether it is more likely than not that the Company will be required to sell for fixed maturity securities. Inherently, there are risks and uncertainties involved in making these judgments. Changes in circumstances and critical assumptions such as a continued weak economy, a more pronounced economic downturn or unforeseen events which affect one or more companies, industry sectors, or countries could result in additional impairments in future periods for other-than-temporary declines in value. Any equity security whose price decline is deemed other-than-temporary is written down to its then current market value with the amount of the impairment reported as a realized loss in that period. The impairment of a fixed maturity security that the Company has the intent to sell or that it is more likely than not that the Company will be required to sell is deemed other-than-temporary and is written down to its market value at the balance sheet date with the amount of the impairment reported as a realized loss in that period. For all other-than-temporarily impaired fixed maturity securities that do not meet either of these two criteria, the Company is required to analyze its ability to recover the amortized cost of the security by calculating the net present value of projected future cash flows. For these other-than-temporarily impaired fixed maturity securities, the net amount recognized in earnings is equal to the difference between the amortized cost of the fixed maturity security and its net present value.

The Company considers different factors to determine the amount of projected future cash flows and discounting methods for corporate debt and residential and commercial mortgage-backed or asset-backed securities. For corporate debt securities, the split between the credit and non-credit losses is driven principally by assumptions regarding the amount and timing of projected future cash flows. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the security at the date of acquisition. For residential and commercial mortgage-backed and asset-backed securities, cash flow estimates, including prepayment assumptions, are based on data from widely accepted third-party data sources or internal estimates. In addition to prepayment assumptions, cash flow estimates vary based on assumptions regarding the underlying collateral including default rates, recoveries and changes in value. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security prior to impairment at the balance sheet date. The discounted cash flows become the new amortized cost basis of the fixed maturity security.

13

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

In periods subsequent to the recognition of an OTTI, the Company generally accretes the discount (or amortizes the reduced premium) into net investment income, up to the non-discounted amount of projected future cash flows, resulting from the reduction in cost basis, based upon the amount and timing of the expected future cash flows over the estimated period of cash flows.

The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities and equity securities at September 30, 2014 and December 31, 2013 were as follows:

	September 30, 2014
	Less than 12 months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed maturity securities:
United States Government and government agencies and authorities	$	37,746	$	(104	)	$	24,895	$	(535	)	$	62,641	$	(639	)
States, municipalities and political subdivisions		7,080		(383	)		4,565		(134	)		11,645		(517	)
Foreign governments		43,539		(112	)		46,480		(1,594	)		90,019		(1,706	)
Asset-backed		—		—			1,462		(32	)		1,462		(32	)
Residential mortgage-backed		104,337		(379	)		124,490		(3,067	)		228,827		(3,446	)
Corporate		720,525		(7,245	)		196,815		(4,525	)		917,340		(11,770	)
Total fixed maturity securities	$	913,227	$	(8,223	)	$	398,707	$	(9,887	)	$	1,311,934	$	(18,110	)
Equity securities:
Common stock	$	1,078	$	(46	)	$	193	$	(3	)	$	1,271	$	(49	)
Non-redeemable preferred stocks		58,042		(756	)		31,314		(1,681	)		89,356		(2,437	)
Total equity securities	$	59,120	$	(802	)	$	31,507	$	(1,684	)	$	90,627	$	(2,486	)

	December 31, 2013
	Less than 12 months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed maturity securities:
United States Government and government agencies and authorities	$	52,615	$	(1,464	)	$	3,514	$	(424	)	$	56,129	$	(1,888	)
States, municipalities and political subdivisions		30,145		(2,624	)		—		—			30,145		(2,624	)
Foreign governments		217,708		(7,596	)		111		(12	)		217,819		(7,608	)
Asset-backed		—		—			1,442		(56	)		1,442		(56	)
Commercial mortgage-backed		5,036		(82	)		—		—			5,036		(82	)
Residential mortgage-backed		407,808		(11,667	)		31,498		(1,550	)		439,306		(13,217	)
Corporate		1,412,611		(36,848	)		19,291		(805	)		1,431,902		(37,653	)
Total fixed maturity securities	$	2,125,923	$	(60,281	)	$	55,856	$	(2,847	)	$	2,181,779	$	(63,128	)
Equity securities:
Common stock	$	187	$	(10	)	$	—	$	—		$	187	$	(10	)
Non-redeemable preferred stocks		159,723		(8,200	)		11,807		(1,199	)		171,530		(9,399	)
Total equity securities	$	159,910	$	(8,210	)	$	11,807	$	(1,199	)	$	171,717	$	(9,409	)

14

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

Total gross unrealized losses represent approximately 2% and 3% of the aggregate fair value of the related securities at September 30, 2014 and December 31, 2013, respectively. Approximately 44% and 94% of these gross unrealized losses have been in a continuous loss position for less than twelve months at September 30, 2014 and December 31, 2013, respectively. The total gross unrealized losses are comprised of 477 and 667 individual securities at September 30, 2014 and December 31, 2013, respectively. In accordance with its policy described above, the Company concluded that for these securities an adjustment to its results of operations for other-than-temporary impairments of the gross unrealized losses was not warranted at September 30, 2014 and December 31, 2013. These conclusions were based on a detailed analysis of the underlying credit and expected cash flows of each security. As of September 30, 2014, the gross unrealized losses that have been in a continuous loss position for twelve months or more were concentrated in the Company’s foreign governments, residential mortgage-backed, and corporate fixed maturity securities, and in non-redeemable preferred stocks. Within the Company’s corporate fixed maturity securities, the majority of the loss position relates to securities in the industrial sector. The industrial sector’s gross unrealized losses of twelve months or more were $1,365, or 30%, of the corporate fixed maturity securities total. The non-redeemable preferred stocks are perpetual preferred securities that have characteristics of both debt and equity securities. To evaluate these securities, we apply an impairment model similar to that used for our fixed maturity securities. As of September 30, 2014, the Company did not intend to sell these securities and it was not more likely than not that the Company would be required to sell them and no underlying cash flow issues were noted. Therefore, the Company did not recognize an OTTI on those perpetual preferred securities that had been in a continuous unrealized loss position for twelve months or more. As of September 30, 2014, the Company did not intend to sell the fixed maturity securities and it was not more likely than not that the Company would be required to sell the securities before the anticipated recovery of their amortized cost basis. The gross unrealized losses are primarily attributable to widening credit spreads associated with an underlying shift in overall credit risk premium.

The Company has entered into commercial mortgage loans, collateralized by the underlying real estate, on properties located throughout the U.S. and Canada. At September 30, 2014, approximately 39% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, New York, and Utah. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to repay their loans. The outstanding balance of commercial mortgage loans ranges in size from $6 to $15,288 at September 30, 2014 and from $9 to $15,574 at December 31, 2013.

Credit quality indicators for commercial mortgage loans are loan-to-value and debt-service coverage ratios. Loan-to-value and debt-service coverage ratios are measures commonly used to assess the credit quality of commercial mortgage loans. The loan-to-value ratio compares the principal amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments and is commonly expressed as a ratio. The loan-to-value and debt-service coverage ratios are generally updated annually in the third quarter.

15

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

The following summarizes our loan-to-value and average debt-service coverage ratios as of the dates indicated:

	September 30, 2014
Loan-to-Value	Carrying Value			% of  Gross Mortgage Loans			Debt-Service Coverage  Ratio
70% and less	$	1,129,193			89.8	%		2.03
71 – 80%		87,488			7.0	%		1.25
81 – 95%		34,694			2.7	%		0.97
Greater than 95%		6,531			0.5	%		0.43
Gross commercial mortgage loans		1,257,906			100	%		1.94
Less valuation allowance		(4,482	)
Net commercial mortgage loans	$	1,253,424
	December 31, 2013
Loan-to-Value	Carrying Value			% of  Gross Mortgage Loans			Debt-Service Coverage Ratio
70% and less	$	1,143,200			88.5	%		1.97
71 – 80%		73,603			5.7	%		1.44
81 – 95%		58,752			4.6	%		1.19
Greater than 95%		15,959			1.2	%		0.87
Gross commercial mortgage loans		1,291,514			100	%		1.89
Less valuation allowance		(4,482	)
Net commercial mortgage loans	$	1,287,032

All commercial mortgage loans that are individually impaired have an established mortgage loan valuation allowance for losses. Changing economic conditions affect our valuation of commercial mortgage loans. Changing vacancies and rents are incorporated into the discounted cash flow analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) a commercial mortgage loan valuation allowance for losses. In addition, we continue to monitor the entire commercial mortgage loan portfolio to identify risk. Areas of emphasis are properties that have exposure to specific geographic events, have deteriorating credits or have experienced a reduction in debt-service coverage ratio. Where warranted, we have established or increased a valuation allowance based upon this analysis.

Collateralized Transactions

The Company engages in transactions in which fixed maturity securities, primarily bonds issued by the U.S. government and government agencies and authorities, and U.S. corporations, are loaned to selected broker/dealers. Collateral, greater than or equal to 102% of the fair value of the securities lent, plus accrued interest, is received in the form of cash and cash equivalents held by a custodian bank for the benefit of the Company. The use of cash collateral received is unrestricted. The Company reinvests the cash collateral received, generally in investments of high credit quality that are designated as available-for-sale. The Company monitors the fair value of securities loaned and the collateral received, with additional collateral obtained, as necessary. The Company is subject to the risk of loss to the extent there is a loss on the re-investment of cash collateral.

As of September 30, 2014 and December 31, 2013, our collateral held under securities lending agreements, of which its use is unrestricted, was $95,977 and $95,215, respectively, and is included in the consolidated balance sheets under the collateral held/pledged under securities agreements. Our liability to the borrower for collateral received was $95,973 and $95,206, respectively, and is included in the consolidated balance sheets under obligation under securities agreements. The difference between the collateral held and obligations under securities lending is recorded as an unrealized gain (loss) and is included as part of AOCI. There was one security in an unrealized loss position as of September 30, 2014 and it has been in an unrealized loss position for less than 12 months. All securities were in an unrealized gain position as of December 31, 2013. The Company includes the available-for-sale investments purchased with the cash collateral in its evaluation of other-than-temporary impairments.

16

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

Cash proceeds that the Company receives as collateral for the securities it lends and subsequent repayment of the cash are regarded by the Company as cash flows from financing activities, since the cash received is considered a borrowing. Since the Company reinvests the cash collateral generally in investments that are designated as available-for-sale, the reinvestment is presented as cash flows from investing activities.

6. Fair Value Disclosures

Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures

The fair value measurements and disclosures guidance defines fair value and establishes a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with this guidance, the Company has categorized its recurring basis financial assets and liabilities into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique.

The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The levels of the fair value hierarchy are described below:

• Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access.

• Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset, either directly or indirectly, for substantially the full term of the asset. Level 2 inputs include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active and inputs other than quoted prices that are observable in the marketplace for the asset. The observable inputs are used in valuation models to calculate the fair value for the asset.

• Level 3 inputs are unobservable but are significant to the fair value measurement for the asset, and include situations where there is little, if any, market activity for the asset. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset.

A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.

The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013. The amounts presented below for Collateral held/pledged under securities agreements, Other investments, Cash equivalents, Other assets, Assets and Liabilities held in separate accounts and Other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan, American Security Insurance Company Investment Plan, Assurant Deferred Compensation Plan, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of investments in the Assurant Investment Plan, contingent consideration related to a business combination and other derivatives. The fair value amount and the majority of the associated levels presented for Other investments and Assets and Liabilities held in separate accounts are received directly from third parties.

17

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

	September 30, 2014
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies and authorities	$	177,408	$	—		$	177,408		$	—
State, municipalities and political subdivisions		830,367		—			830,367			—
Foreign governments		668,356		705			667,651			—
Asset-backed		5,758		—			5,758			—
Commercial mortgage-backed		58,061		—			57,608			453
Residential mortgage-backed		997,605		—			997,605			—
Corporate		8,886,454		—			8,771,973			114,481
Equity securities:
Common stocks		34,823		34,139			684			—
Non-redeemable preferred stocks		486,884		—			482,839			4,045
Short-term investments		465,295		392,642	b		72,653	c		—
Collateral held/pledged under securities agreements		74,976		66,971	b		8,005	c		—
Other investments		268,842		58,021	a		208,234	c		2,587	d
Cash equivalents		821,233		818,528	b		2,705	c		—
Other assets		1,735		—			755	f		980	e
Assets held in separate accounts		1,820,241		1,639,251	a		180,990	c		—
Total financial assets	$	15,598,038	$	3,010,257		$	12,465,235		$	122,546
Financial Liabilities
Other liabilities	$	86,155	$	58,021	a	$	34	f	$	28,100	f
Liabilities related to separate accounts		1,820,241		1,639,251	a		180,990	c		—
Total financial liabilities	$	1,906,396	$	1,697,272		$	181,024		$	28,100

18

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

	December 31, 2013
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies and authorities	$	410,656	$	—		$	410,656		$	—
State, municipalities and political subdivisions		835,152		—			812,495			22,657
Foreign governments		675,421		789			657,775			16,857
Asset-backed		6,174		—			6,174			—
Commercial mortgage-backed		60,362		—			59,764			598
Residential mortgage-backed		947,904		—			943,737			4,167
Corporate		8,356,206		—			8,240,862			115,344
Equity securities:
Common stocks		29,232		28,548			684			—
Non-redeemable preferred stocks		429,126		—			421,616			7,510
Short-term investments		470,458		273,518	b		196,940	c		—
Collateral held/pledged under securities agreements		74,212		67,202	b		7,010	c		—
Other investments		246,748		66,659	a		175,918	c		4,171	d
Cash equivalents		1,233,701		967,372	b		266,329	c		—
Other assets		3,726		—			1,235	f		2,491	e
Assets held in separate accounts		1,887,988		1,696,811	a		191,177	c		—
Total financial assets	$	15,667,066	$	3,100,899		$	12,392,372		$	173,795
Financial Liabilities
Other liabilities	$	106,992	$	54,794	a	$	31,868	g	$	20,330	f
Liabilities related to separate accounts		1,887,988		1,696,811	a		191,177	c		—
Total financial liabilities	$	1,994,980	$	1,751,605		$	223,045		$	20,330

a. Mainly includes mutual funds.

b. Mainly includes money market funds.

c. Mainly includes fixed maturity securities.

d. Mainly includes fixed maturity securities and other derivatives.

e. Mainly includes the Consumer Price Index Cap Derivatives (“CPI Caps”).

f. Mainly includes other derivatives.

g. Mainly includes contingent consideration liability related to a business combination.

There were no transfers between Level 1 and Level 2 financial assets during either period. However, there were transfers between Level 2 and Level 3 financial assets during the periods, which are reflected in the “Transfers in” and “Transfers out” columns below. Transfers between Level 2 and Level 3 most commonly occur from changes in the availability of observable market information and re-evaluation of the observability of pricing inputs. Any remaining unpriced securities are submitted to independent brokers who provide non-binding broker quotes or are priced by other qualified sources.

19

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

The following tables summarize the change in balance sheet carrying value associated with Level 3 financial assets and liabilities carried at fair value during the three and nine months ended September 30, 2014 and 2013:

	Three Months Ended September 30, 2014
	Balance, beginning of period			Total gains (losses) (realized/ unrealized) included in earnings (1)			Net unrealized (losses) gains included  in other comprehensive income  (2)			Purchases		Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
Commercial mortgage-backed	$	503		$	—		$	(5	)	$	—	$	(45	)	$	—	$	—		$	453
Corporate		116,827			1,684			(1,840	)		9,637		(3,325	)		1,515		(10,017	)		114,481
Equity Securities
Non-redeemable preferred stocks		4,099			(1	)		(53	)		—		—			—		—			4,045
Other investments		2,615			(437	)		2			439		(32	)		—		—			2,587
Other assets		2,268			(1,288	)		—			—		—			—		—			980
Financial Liabilities
Other liabilities		(23,160	)		(4,940	)		—			—		—			—		—			(28,100	)
Total level 3 assets and liabilities	$	103,152		$	(4,982	)	$	(1,896	)	$	10,076	$	(3,402	)	$	1,515	$	(10,017	)	$	94,446

20

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

	Three Months Ended September 30, 2013
	Balance, beginning  of period			Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized (losses) gains included  in other comprehensive income  (2)			Purchases			Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
United States Government and government agencies and authorities	$	84		$	—		$	—		$	—		$	(84	)	$	—	$	—		$	—
Foreign governments		21,032			(2	)		(433	)		—			—			—		—			20,597
Commercial mortgage-backed		683			—			—			—			(42	)		—		—			641
Residential mortgage-backed		20,326			(18	)		64			—			(583	)		—		(9,004	)		10,785
Corporate		133,623			109			(2,070	)		—			(1,543	)		—		(6,965	)		123,154
Equity Securities
Non-redeemable preferred stocks		2,301			—			289			—			—			3,527		—			6,117
Other investments		10,601			85			693			—			(636	)		—		—			10,743
Other assets		2,963			(217	)		—			—			—			—		—			2,746
Financial Liabilities
Other liabilities		(1,590	)		(589	)		—			(1,897	)		—			—		—			(4,076	)
Total level 3 assets and liabilities	$	190,023		$	(632	)	$	(1,457	)	$	(1,897	)	$	(2,888	)	$	3,527	$	(15,969	)	$	170,707

21

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

	Nine Months Ended September 30, 2014
	Balance, beginning  of period			Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized gains (losses) included  in other comprehensive income  (2)			Purchases			Sales			Transfers in  (3)		Transfers out  (3)			Balance, end  of period
Financial Assets
Fixed Maturity Securities
States, municipalities and political subdivisions	$	22,657		$	—		$	—		$	—		$	—		$	—	$	(22,657	)	$	—
Foreign governments		16,857			(2	)		18			—			—			—		(16,873	)		—
Commercial mortgage-backed		598			—			(14	)		—			(131	)		—		—			453
Residential mortgage-backed		4,167			—			—			—			—			—		(4,167	)		—
Corporate		115,344			1,739			2,286			19,578			(8,608	)		1,515		(17,373	)		114,481
Equity Securities
Non-redeemable preferred stocks		7,510			327			(186	)		—			(1,830	)		—		(1,776	)		4,045
Other investments		4,171			(1,952	)		11			439			(82	)		—		—			2,587
Other assets		2,491			(1,511	)		—			—			—			—		—			980
Financial Liabilities
Other liabilities		(20,330	)		(3,770	)		—			(4,000	)		—			—		—			(28,100	)
Total level 3 assets and liabilities	$	153,465		$	(5,169	)	$	2,115		$	16,017		$	(10,651	)	$	1,515	$	(62,846	)	$	94,446

22

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

	Nine Months Ended September 30, 2013
	Balance, beginning  of period			Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized (losses) gains included  in other comprehensive income  (2)			Purchases			Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
United States Government and government agencies and authorities	$	4,175		$	—		$	(3	)	$	—		$	(4,172	)	$	—	$	—		$	—
Foreign governments		23,097			(4	)		(2,496	)		—			—			—		—			20,597
Commercial mortgage-backed		1,774			20			(30	)		—			(1,123	)		—		—			641
Residential mortgage-backed		8,211			(31	)		(1,145	)		29,938			(1,326	)		—		(24,862	)		10,785
Corporate		158,003			(390	)		(4,000	)		5,325			(25,045	)		4,997		(15,736	)		123,154
Equity Securities
Non-redeemable preferred stocks		14			12			309			4,308			(2,040	)		3,527		(13	)		6,117
Other investments		11,327			(813	)		1,275			8			(1,054	)		—		—			10,743
Other assets		5,886			(3,140	)		—			—			—			—		—			2,746
Financial Liabilities
Other liabilities		(2,560	)		381			—			(1,897	)		—			—		—			(4,076	)
Total level 3 assets and liabilities	$	209,927		$	(3,965	)	$	(6,090	)	$	37,682		$	(34,760	)	$	8,524	$	(40,611	)	$	170,707

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

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

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

Three different valuation techniques can be used in determining fair value for financial assets and liabilities: the market, income or cost approaches. The three valuation techniques described in the fair value measurements and disclosures guidance are consistent with generally accepted valuation methodologies. The market approach valuation techniques use prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. When possible, quoted prices (unadjusted) in active markets are used as of the period-end date (such as for mutual funds and money market funds). Otherwise, valuation techniques consistent with the market approach including matrix pricing and comparables are used. Matrix pricing is a mathematical technique employed principally to value debt securities without relying exclusively on quoted prices for those securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Market approach valuation techniques often use market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering both qualitative and quantitative factors specific to the measurement.

Income approach valuation techniques convert future amounts, such as cash flows or earnings, to a single present amount, or a discounted amount. These techniques rely on current market expectations of future amounts as of the period-end date. Examples of income approach valuation techniques include present value techniques, option-pricing models, binomial or lattice models that incorporate present value techniques and the multi-period excess earnings method.

Cost approach valuation techniques are based upon the amount that would be required to replace the service capacity of an asset at the period-end date, or the current replacement cost. That is, from the perspective of a market participant (seller), the price that would be received for the asset is determined based on the cost to a market participant (buyer) to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence.

23

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

While not all three approaches are applicable to all financial assets or liabilities, where appropriate, one or more valuation techniques may be used. For all the classes of financial assets and liabilities included in the above hierarchy, excluding the CPI Caps and certain privately placed corporate bonds, the market valuation technique is generally used. For certain privately placed corporate bonds, the CPI Caps, and certain derivatives, the income valuation technique is generally used. For the periods ended September 30, 2014 and December 31, 2013, the application of the valuation technique applied to the Company’s classes of financial assets and liabilities has been consistent.

Level 1 Securities

The Company’s investments and liabilities classified as Level 1 as of September 30, 2014 and December 31, 2013, consisted of mutual funds and money market funds, foreign government fixed maturities and common stocks that are publicly listed and/or actively traded in an established market.

Level 2 Securities

The Company’s Level 2 securities are valued using various observable market inputs obtained from a pricing service. The pricing service prepares estimates of fair value measurements for our Level 2 securities using proprietary valuation models based on techniques such as matrix pricing which include observable market inputs. The fair value measurements and disclosures guidance defines observable market inputs as the assumptions market participants would use in pricing the asset or liability developed on market data obtained from sources independent of the Company. The extent of the use of each observable market input for a security depends on the type of security and the market conditions at the balance sheet date. Depending on the security, the priority of the use of observable market inputs may change as some observable market inputs may not be relevant or additional inputs may be necessary. The following observable market inputs (“standard inputs”), listed in the approximate order of priority, are utilized in the pricing evaluation of Level 2 securities: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research data. Further details for Level 2 investment types follow:

United States Government and government agencies and authorities: U.S. government and government agencies and authorities securities are priced by our pricing service utilizing standard inputs. Included in this category are U.S. Treasury securities which are priced using vendor trading platform data in addition to the standard inputs.

State, municipalities and political subdivisions: State, municipalities and political subdivisions securities are priced by our pricing service utilizing material event notices and new issue data inputs in addition to the standard inputs.

Foreign governments: Foreign government securities are primarily fixed maturity securities denominated in Canadian dollars which are priced by our pricing service utilizing standard inputs. The pricing service also evaluates each security based on relevant market information including relevant credit information, perceived market movements and sector news.

Commercial mortgage-backed, residential mortgage-backed and asset-backed: Commercial mortgage-backed, residential mortgage-backed and asset-backed securities are priced by our pricing service utilizing monthly payment information and collateral performance information in addition to the standard inputs. Additionally, commercial mortgage-backed securities and asset-backed securities utilize new issue data while residential mortgage-backed securities utilize vendor trading platform data.

Corporate: Corporate securities are priced by our pricing service utilizing standard inputs. Non-investment grade securities within this category are priced by our pricing service utilizing observations of equity and credit default swap curves related to the issuer in addition to the standard inputs. Certain privately placed corporate bonds are priced by a non-pricing service source using a model with observable inputs including, but not limited to, the credit rating, credit spreads, sector add-ons, and issuer specific add-ons.

Non-redeemable preferred stocks: Non-redeemable preferred stocks are priced by our pricing service utilizing observations of equity and credit default swap curves related to the issuer in addition to the standard inputs.

24

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

Short-term investments, collateral held/pledged under securities agreements, other investments, cash equivalents, and assets/liabilities held in separate accounts: To price the fixed maturity securities in these categories, the pricing service utilizes the standard inputs.

Other liabilities: The contingent consideration liability related to a business combination is valued at the contractual amount stated in the purchase agreement plus accrued interest. The contractual amount plus interest represents the fair value and is a market observable input due to the fact that the amount is specifically stated in the agreement and there is a short time frame (less than three months) for determining whether the payment will be made or not.

Valuation models used by the pricing service can change period to period, depending on the appropriate observable inputs that are available at the balance sheet date to price a security. When market observable inputs are unavailable to the pricing service, the remaining unpriced securities are submitted to independent brokers who provide non-binding broker quotes or are priced by other qualified sources. If the Company cannot corroborate the non-binding broker quotes with Level 2 inputs, these securities are categorized as Level 3 securities.

Level 3 Securities

The Company’s investments classified as Level 3 as of September 30, 2014 and December 31, 2013 consisted of fixed maturity and equity securities and derivatives. All of the Level 3 fixed maturity and equity securities are priced using non-binding broker quotes which cannot be corroborated with Level 2 inputs. Of our total Level 3 fixed maturity and equity securities, $65,811 and $70,244 were priced by a pricing service using single broker quotes due to insufficient information to provide an evaluated price as of September 30, 2014 and December 31, 2013, respectively. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The remaining $53,626 and $97,219 were priced internally using independent and non-binding broker quotes as of September 30, 2014 and December 31, 2013, respectively. The inputs factoring into the broker quotes include trades in the actual bond being priced, trades of comparable bonds, quality of the issuer, optionality, structure and liquidity. Significant changes in interest rates, issuer credit, liquidity, and overall market conditions would result in a significantly lower or higher broker quote. The prices received from both the pricing service and internally are reviewed for reasonableness by management and if necessary, management works with the pricing service or broker to further understand how they developed their price. Further details on Level 3 derivative investment types follow:

Other investments and other liabilities: Swaptions are priced using a Black-Scholes pricing model incorporating third-party market data, including swap volatility data. Credit default swaps are priced using non-binding quotes provided by market makers or broker-dealers who are recognized as market participants. Inputs factored into the non-binding quotes include trades in the actual credit default swap which is being priced, trades in comparable credit default swaps, quality of the issuer, structure and liquidity. The net option related to the investment in Iké is valued using an income approach; specifically, a Monte Carlo simulation option pricing model. The inputs to the model include, but are not limited to, the projected normalized earnings before interest, tax, depreciation, and amortization (EBITDA) and free cash flow for the underlying asset, the discount rate, and the volatility of and the correlation between the normalized EBITDA and the value of the underlying asset. Significant increases (decreases) in the projected normalized EBITDA relative to the value of the underlying asset in isolation would result in a significantly higher (lower) fair value.

Other assets: A non-pricing service source prices the CPI Cap derivatives using a model with inputs including, but not limited to, the time to expiration, the notional amount, the strike price, the forward rate, implied volatility and the discount rate.

Management evaluates the following factors in order to determine whether the market for a financial asset is inactive. The factors include, but are not limited to:

• There are few recent transactions,

• Little information is released publicly,

• The available prices vary significantly over time or among market participants,

• The prices are stale (i.e., not current), and

• The magnitude of the bid-ask spread.

Illiquidity did not have a material impact in the fair value determination of the Company’s financial assets.

25

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

The Company generally obtains one price for each financial asset. The Company performs a monthly analysis to assess if the evaluated prices represent a reasonable estimate of their fair value. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. Examples of procedures performed include, but are not limited to, initial and on-going review of pricing service methodologies, review of the prices received from the pricing service, review of pricing statistics and trends, and comparison of prices for certain securities with two different appropriate price sources for reasonableness. Following this analysis, the Company generally uses the best estimate of fair value based upon all available inputs. On infrequent occasions, a non-pricing service source may be more familiar with the market activity for a particular security than the pricing service. In these cases the price used is taken from the non-pricing service source. The pricing service provides information to indicate which securities were priced using market observable inputs so that the Company can properly categorize our financial assets in the fair value hierarchy.

For the net option, the Company will perform a periodic analysis to assess if the evaluated price represents a reasonable estimate of the fair value for the financial liability. This process will involve quantitative and qualitative analysis overseen by finance and accounting professionals. Examples of procedures to be performed include, but are not limited to, initial and on-going review of the pricing methodology and review of the projection for the underlying asset including the probability distribution of possible scenarios.

Disclosures for Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis

The Company also measures the fair value of certain assets on a non-recurring basis, generally on an annual basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include commercial mortgage loans, goodwill and finite-lived intangible assets.

The Company utilizes both the income and market valuation approaches to measure the fair value of its reporting units when required. Under the income approach, the Company determined the fair value of the reporting units considering distributable earnings, which were estimated from operating plans. The resulting cash flows were then discounted using a market participant weighted average cost of capital estimated for the reporting units. After discounting the future discrete earnings to their present value, the Company estimated the terminal value attributable to the years beyond the discrete operating plan period. The discounted terminal value was then added to the aggregate discounted distributable earnings from the discrete operating plan period to estimate the fair value of the reporting units. Under the market approach, the Company derived the fair value of the reporting units based on various financial multiples, including but not limited to: price to tangible book value of equity, price to estimated 2014 earnings and price to estimated 2014 earnings, which were estimated based on publicly available data related to comparable guideline companies. In addition, financial multiples were also estimated from publicly available purchase price data for acquisitions of companies operating in the insurance industry. The estimated fair value of the reporting units was more heavily weighted towards the income approach because in the current economic environment the earnings capacity of a business is generally considered the most important factor in the valuation of a business enterprise. This fair value determination was categorized as Level 3 (unobservable) in the fair value hierarchy.

Fair Value of Financial Instruments Disclosures

The financial instruments guidance requires disclosure of fair value information about financial instruments, as defined therein, for which it is practicable to estimate such fair value. Therefore, it requires fair value disclosure for financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets. However, this guidance excludes certain financial instruments, including those related to insurance contracts and those accounted for under the equity method and joint ventures guidance (such as real estate joint ventures).

For the financial instruments included within the following financial assets and financial liabilities, the carrying value in the consolidated balance sheets equals or approximates fair value. Please refer to the Fair Value Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures section above for more information on the financial instruments included within the following financial assets and financial liabilities and the methods and assumptions used to estimate fair value:

• Cash and cash equivalents

• Fixed maturity securities

• Equity securities

• Short-term investments

26

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

• Collateral held/pledged under securities agreements

• Other investments

• Other assets

• Assets held in separate accounts

• Other liabilities

• Liabilities related to separate accounts

In estimating the fair value of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets, the Company used the following methods and assumptions:

Commercial mortgage loans: the fair values of mortgage loans are estimated using discounted cash flow models. The model inputs include mortgage amortization schedules and loan provisions, an internally developed credit spread based on the credit risk associated with the borrower and the U.S. Treasury spot curve. Mortgage loans with similar characteristics are aggregated for purposes of the calculations.

Policy loans: the carrying value of policy loans reported in the consolidated balance sheets approximates fair value.

Policy reserves under investment products: the fair values for the Company’s policy reserves under investment products are determined using discounted cash flow analysis. Key inputs to the valuation include projections of policy cash flows, reserve run-off, market yields and risk margins.

Funds held under reinsurance: the carrying value reported approximates fair value due to the short maturity of the instruments.

Debt: the fair value of debt is based upon matrix pricing performed by the pricing service utilizing the standard inputs.

Obligation under securities agreements: obligation under securities agreements is reported at the amount of cash received from the selected broker/dealers.

27

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

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

	September 30, 2014
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	1,253,424	$	1,434,289	$	—	$	—	$	1,434,289
Policy loans		48,979		48,979		48,979		—		—
Total financial assets	$	1,302,403	$	1,483,268	$	48,979	$	—	$	1,434,289
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	766,039	$	787,947	$	—	$	—	$	787,947
Funds withheld under reinsurance		78,707		78,707		78,707		—		—
Debt		1,171,005		1,273,705		—		1,273,705		—
Obligations under securities agreements		95,973		95,973		95,973		—		—
Total financial liabilities	$	2,111,724	$	2,236,332	$	174,680	$	1,273,705	$	787,947
	December 31, 2013
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	1,287,032	$	1,444,974	$	—	$	—	$	1,444,974
Policy loans		51,678		51,678		51,678		—		—
Total financial assets	$	1,338,710	$	1,496,652	$	51,678	$	—	$	1,444,974
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	809,628	$	808,734		—		—	$	808,734
Funds withheld under reinsurance		76,778		76,778		76,778		—		—
Debt		1,638,118		1,656,588		—		1,656,588		—
Obligations under securities agreements		95,206		95,206		95,206		—		—
Total financial liabilities	$	2,619,730	$	2,637,306	$	171,984	$	1,656,588	$	808,734

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

Reinsurance Recoverables Credit Disclosures

A key credit quality indicator for reinsurance is the A.M. Best financial strength ratings of the reinsurer. The A.M. Best ratings are an independent opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. The A.M. Best ratings for new reinsurance agreements where there is material credit exposure are reviewed at the time of execution. The A.M. Best ratings for existing reinsurance agreements are reviewed on a periodic basis, at least annually. The A.M. Best ratings have not changed significantly since December 31, 2013.

An allowance for doubtful accounts for reinsurance recoverables is recorded on the basis of periodic evaluations of balances due from reinsurers (net of collateral), reinsurer solvency, management’s experience and current economic conditions. The Company carries an allowance for doubtful accounts for reinsurance recoverables of $10,820 as of September 30, 2014 and December 31, 2013.

28

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

7. Debt

On March 28, 2013, the Company issued two series of senior notes with an aggregate principal amount of $700,000 (the “2013 Senior Notes”). The Company received net proceeds of $698,093 from this transaction, which represents the principal amount less the discount before offering expenses. The discount of $1,907 is being amortized over the life of the 2013 Senior Notes and is included as part of interest expense on the consolidated statements of operations. The first series is $350,000 in principal amount, bears interest at 2.50% per year and is payable in a single installment due March 15, 2018 and was issued at a 0.18% discount. The second series is $350,000 in principal amount, bears interest at 4.00% per year and is payable in a single installment due March 15, 2023 and was issued at a 0.37% discount. Interest on the 2013 Senior Notes is payable semi-annually on March 15 and September 15 of each year. The 2013 Senior Notes are unsecured obligations and rank equally with all of the Company’s other senior unsecured indebtedness. The Company may redeem each series of the 2013 Senior Notes in whole or in part at any time and from time to time before their maturity at the redemption price set forth in the Indenture. The 2013 Senior Notes are registered under the Securities Act of 1933, as amended.

The interest expense incurred related to the 2013 Senior Notes was $5,745 and $5,870 for the three months ended September 30, 2014 and 2013, respectively, and $17,234 and $11,613 for the nine months ended September 30, 2014 and 2013, respectively. There was $948 of accrued interest at both September 30, 2014 and 2013. The Company made interest payments on the 2013 Senior Notes of $11,375 on March 15, 2014 and $11,375 and $10,553 on September 15, 2014 and 2013, respectively.

In February 2004, the Company issued two series of senior notes with an aggregate principal amount of $975,000 (the “2004 Senior Notes”). The Company received proceeds of $971,537 from this transaction, which represents the principal amount less the discount before offering expenses. The discount of $3,463 is being amortized over the life of the 2004 Senior Notes and is included as part of interest expense on the statements of operations. The first series was $500,000 in principal amount, issued at a 0.11% discount, bore interest at 5.63% per year and was repaid on February 18, 2014. 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 2004 Senior Notes is payable semi-annually on February 15 and August 15 of each year. The 2004 Senior Notes are unsecured obligations and rank equally with all of the Company’s other senior unsecured indebtedness. The 2004 Senior Notes are not redeemable prior to maturity. All of the holders of the 2004 Senior Notes exchanged their notes in May 2004 for new notes registered under the Securities Act of 1933, as amended.

The interest expense incurred related to the 2004 Senior Notes was $8,031 and $14,714 for the three months ended September 30, 2014 and 2013, respectively, and $27,383 and $44,795 for the nine months ended September 30, 2014 and 2013, respectively. There was $4,008 and $7,523 of accrued interest at September 30, 2014 and 2013, respectively. The Company made interest payments on the 2004 Senior Notes of $30,094 on February 15, 2014 and 2013 and $16,031 and $30,094 on August 15, 2014 and 2013, respectively.

Credit Facility

On September 16, 2014, the Company entered into a five-year unsecured $400,000 revolving credit agreement (the “2014 Credit Facility”) with a syndicate of banks arranged by JP Morgan Chase Bank, N.A. and Wells Fargo, N.A. The 2014 Credit Facility replaces the Company’s prior four-year $350,000 revolving credit facility (the “2011 Credit Facility”), which was entered into on September 21, 2011 and was scheduled to expire in September 2015. The 2011 Credit Facility terminated upon the effectiveness of the 2014 Credit Facility. The 2014 Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and/or letters of credit from a sole issuing bank in an aggregate amount of $400,000 and is available until September 2019, provided the Company is in compliance with all covenants. The 2014 Credit Facility has a sublimit for letters of credit issued thereunder of $50,000. The proceeds of these loans may be used for the Company’s commercial paper program or for general corporate purposes. The Company may increase the total amount available under the 2014 Credit Facility to $525,000 subject to certain conditions. No bank is obligated to provide commitments above their share of the $400,000 facility.

29

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

The Company’s commercial paper program requires the Company to maintain liquidity facilities either in an available amount equal to any outstanding notes from the commercial paper program or in an amount sufficient to maintain the ratings assigned to the notes issued from the commercial paper program. The Company’s subsidiaries do not maintain commercial paper or other borrowing facilities at their level. This program is currently backed up by a $400,000 senior revolving credit facility, of which $395,740 was available at September 30, 2014, due to $4,260 of outstanding letters of credit related to this program.

The Company did not use the commercial paper program during the nine months ended September 30, 2014 and 2013 and there were no amounts outstanding relating to the commercial paper program at September 30, 2014 and December 31, 2013. The Company made no borrowings using either the 2011 Credit Facility or the 2014 Credit Facility and no loans are outstanding at September 30, 2014.

The 2014 Credit Facility contains restrictive covenants and requires that the Company maintain certain specified minimum ratios and thresholds. Among others, these covenants include maintaining a maximum debt to capitalization ratio and a minimum consolidated adjusted net worth. At September 30, 2014, the Company was in compliance with all covenants, minimum ratios and thresholds.

30

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

8. Accumulated Other Comprehensive Income

Certain amounts included in the consolidated statements of comprehensive income are net of reclassification adjustments. The following tables summarize those reclassification adjustments (net of taxes):

	Three Months Ended September 30, 2014
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI			Pension under- funding			Accumulated other comprehensive income
Balance at June 30, 2014	$	(18,937	)	$	837,038		$	28,811		$	(82,840	)	$	764,072
Other comprehensive loss before reclassifications		(54,264	)		(60,219	)		(1,193	)		—			(115,676	)
Amounts reclassified from accumulated other comprehensive income		—			8,602			1,104			1,644			11,350
Net current-period other comprehensive (loss) income		(54,264	)		(51,617	)		(89	)		1,644			(104,326	)
Balance at September 30, 2014	$	(73,201	)	$	785,421		$	28,722		$	(81,196	)	$	659,746
	Three Months Ended September 30, 2013
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI			Pension under- funding			Accumulated other comprehensive income
Balance at June 30, 2013	$	(27,349	)	$	593,630		$	25,558		$	(171,331	)	$	420,508
Other comprehensive income (loss) before reclassifications		5,578			(45,212	)		279			—			(39,355	)
Amounts reclassified from accumulated other comprehensive income		—			1,907			—			3,246			5,153
Net current-period other comprehensive income (loss)		5,578			(43,305	)		279			3,246			(34,202	)
Balance at September 30, 2013	$	(21,771	)	$	550,325		$	25,837		$	(168,085	)	$	386,306
	Nine Months Ended September 30, 2014
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI			Pension under- funding			Accumulated other comprehensive income
Balance at December 31, 2013	$	(38,767	)	$	526,071		$	26,427		$	(86,901	)	$	426,830
Other comprehensive (loss) income before reclassifications		(34,434	)		235,940			1,211			—			202,717
Amounts reclassified from accumulated other comprehensive income		—			23,410			1,084			5,705			30,199
Net current-period other comprehensive (loss) income		(34,434	)		259,350			2,295			5,705			232,916
Balance at September 30, 2014	$	(73,201	)	$	785,421		$	28,722		$	(81,196	)	$	659,746

31

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

	Nine Months Ended September 30, 2013
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI		Pension under- funding			Accumulated other comprehensive income
Balance at December 31, 2012	$	6,882		$	981,879		$	23,861	$	(182,219	)	$	830,403
Other comprehensive (loss) income before reclassifications		(28,653	)		(449,116	)		1,952		—			(475,817	)
Amounts reclassified from accumulated other comprehensive income		—			17,562			24		14,134			31,720
Net current-period other comprehensive (loss) income		(28,653	)		(431,554	)		1,976		14,134			(444,097	)
Balance at September 30, 2013	$	(21,771	)	$	550,325		$	25,837	$	(168,085	)	$	386,306

The following tables summarize the reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2014 and 2013:

Details about accumulated other comprehensive income components	Amount reclassified  from accumulated other comprehensive income						Affected line item in the statement where net income is presented
	Three Months Ended September 30,
	2014			2013
Unrealized gains on securities	$	13,234		$	2,934		Net realized gains on investments, excluding other-than- temporary impairment losses
		(4,632	)		(1,027	)	Provision for income taxes
	$	8,602		$	1,907		Net of tax
OTTI	$	1,697		$	—		Portion of net loss recognized in other comprehensive income, before taxes
		(593	)		—		Provision for income taxes
	$	1,104		$	—		Net of tax
Amortization of pension and postretirement unrecognized net periodic benefit cost:
Amortization of prior service cost	$	(24	)	$	12		(1)
Amortization of net loss		2,553			4,983		(1)
		2,529			4,995		Total before tax
		(885	)		(1,749	)	Provision for income taxes
	$	1,644		$	3,246		Net of tax
Total reclassifications for the period	$	11,350		$	5,153		Net of tax

32

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

Details about accumulated other comprehensive income components	Amount reclassified  from accumulated other comprehensive income						Affected line item in the statement where net income is presented
	Nine Months Ended September 30,
	2014			2013
Unrealized gains on securities	$	36,015		$	27,019		Net realized gains on investments, excluding other-than-temporary impairment losses
		(12,605	)		(9,457	)	Provision for income taxes
	$	23,410		$	17,562		Net of tax
OTTI	$	1,667		$	37		Portion of net loss recognized in other comprehensive income, before taxes
		(583	)		(13	)	Provision for income taxes
	$	1,084		$	24		Net of tax
Amortization of pension and postretirement unrecognized net periodic benefit cost:
Amortization of prior service cost	$	(74	)	$	(88	)	(1)
Amortization of net loss		8,853			21,833		(1)
		8,779			21,745		Total before tax
		(3,074	)		(7,611	)	Provision for income taxes
	$	5,705		$	14,134		Net of tax
Total reclassifications for the period	$	30,199		$	31,720		Net of tax

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 12 - Retirement and Other Employee Benefits for additional information.

9. Stock Based Compensation

Long-Term Equity Incentive Plan

In May 2008, the Company’s shareholders approved the Assurant, Inc. Long-Term Equity Incentive Plan (“ALTEIP”), which authorized the granting of up to 3,400,000 new shares of the Company’s common stock to employees, officers and non-employee directors. In May 2010, the Company’s shareholders approved an amended and restated ALTEIP, increasing the number of shares of the Company’s common stock authorized for issuance to 5,300,000 new shares. Under the ALTEIP, the Company may grant awards based on shares of its common stock, including stock options, stock appreciation rights (“SARs”), restricted stock (including performance shares), unrestricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”) and dividend equivalents. All share-based grants are awarded under the ALTEIP.

The Compensation Committee of the Board of Directors (the “Compensation Committee”) awards PSUs and RSUs annually. RSUs and PSUs are promises to issue actual shares of common stock at the end of a vesting period or performance period. The RSUs granted to employees under the ALTEIP were based on salary grade and performance and vest one-third each year over a three-year period. RSUs granted to non-employee directors also vest one-third each year over a three-year period, however, issuance of vested shares is deferred until separation from Board service. RSUs receive dividend equivalents in cash during the restricted period and do not have voting rights during the restricted period. PSUs accrue dividend equivalents during the performance period based on a target payout, and will be paid in cash at the end of the performance period based on the actual number of shares issued. The fair value of RSUs is estimated using the fair market value of a share of the Company’s common stock at the date of grant. The fair value of PSUs is estimated using the Monte Carlo simulation model and is described in further detail below.

For the PSU portion of an award, the number of shares a participant will receive upon vesting is contingent upon the Company’s performance with respect to selected metrics, identified below, compared against a broad index of insurance companies and assigned a percentile ranking. These rankings are then averaged to determine the composite percentile ranking for the performance period. The payout levels can vary between 0% and 150% (maximum) of the target (100%) ALTEIP award amount based on the Company’s level of performance against the selected metrics.

33

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

PSU Performance Goals. The Compensation Committee established book value per share (“BVPS”) growth excluding AOCI, revenue growth and total stockholder return as the three performance measures for PSU awards. BVPS growth is defined as the year-over-year growth of the Company’s stockholders’ equity excluding AOCI divided by the number of fully diluted total shares outstanding at the end of the period. Revenue growth is defined as the year-over-year change in total revenues as disclosed in the Company’s annual statement of operations. Total stockholder return is defined as appreciation in Company stock plus dividend yield to stockholders. Payouts will be determined by measuring performance against the average performance of companies included in an insurance industry market index.

Since 2009, the Company has used the A.M. Best U.S. Insurance Index to measure its relative performance ranking. In 2014, A.M. Best stopped publishing this index. As of January 1, 2014, the Company is using the S&P Total Market Index to measure the Company’s performance for all new and outstanding PSU awards. Consistent with adjustments made to the A.M. Best U.S. Insurance Index, adjustments will be made to the S&P Total Market Index to exclude companies with revenues of less than $1,000,000 or that are not in the insurance or managed healthcare Global Industry Classification Standard codes. In addition, companies within the Company’s compensation peer group, but not otherwise in the S&P Total Market Index, will be included. The adjusted S&P Total Market Index is substantially similar in composition to the previous A.M. Best U.S. Insurance Index.

Under the ALTEIP, the Company’s Chief Executive Officer (“CEO”) is authorized by the Board of Directors to grant common stock, restricted stock and RSUs to employees other than the executive officers of the Company (as defined in Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). The Board of Directors reviews and ratifies these grants quarterly. Restricted stock and RSUs granted under this program may have different vesting periods.

Restricted Stock Units

RSUs granted to employees and to non-employee directors were 27,347 and 14,916 for the three months ended September 30, 2014 and 2013, respectively, and 358,611 and 481,134 for the nine months ended September 30, 2014 and 2013, respectively. The compensation expense recorded related to RSUs was $6,197 and $6,936 for the three months ended September 30, 2014 and 2013, respectively, and $17,174 and $19,207 for the nine months ended September 30, 2014 and 2013, respectively. The related total income tax benefit was $2,167 and $2,425 for the three months ended September 30, 2014 and 2013, respectively, and $6,001 and $6,714 for the nine months ended September 30, 2014 and 2013, respectively. The weighted average grant date fair value for RSUs granted during the nine months ended September 30, 2014 and 2013 was $65.32 and $44.18, respectively.

As of September 30, 2014, there was $19,197 of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 1.16 years. The total fair value of RSUs vested during the three months ended September 30, 2014 and 2013 was $1,473 and $982, respectively, and $32,354 and $20,832 for the nine months ended September 30, 2014 and 2013, respectively.

Performance Share Units

No PSUs were granted to employees during the three months ended September 30, 2014 and 2013. PSUs granted to employees were 380,349 and 408,808 for the nine months ended September 30, 2014 and 2013, respectively. The compensation expense recorded related to PSUs was $3,460 and $7,839 for the three months ended September 30, 2014 and 2013, respectively, and $17,022 and $16,688 for the nine months ended September 30, 2014 and 2013, respectively. The related total income tax benefit was $1,206 and $2,738 for the three months ended September 30, 2014 and 2013, respectively, and $5,942 and $5,832 for the nine months ended September 30, 2014 and 2013, respectively. The weighted average grant date fair value for PSUs granted during the nine months ended September 30, 2014 and 2013 was $64.93 and $44.22, respectively.

As of September 30, 2014, there was $23,107 of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 0.87 years.

The fair value of PSUs with market conditions was estimated on the date of grant using a Monte Carlo simulation model, which utilizes multiple variables that determine the probability of satisfying the market condition stipulated in the award. Expected volatilities for awards issued during the nine months ended September 30, 2014 and 2013 were based on the historical stock prices of the Company’s stock and peer insurance group. The expected term for grants issued during the nine months ended September 30, 2014 and 2013 was assumed to equal the average of the vesting period of the PSUs. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant.

34

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

Employee Stock Purchase Plan

Under the Employee Stock Purchase Plan (“ESPP”), the Company is authorized to issue up to 5,000,000 new shares to employees who are participants in the ESPP. Eligible employees can purchase shares at a 10% discount applied to the lower of the closing price of the common stock on the first or last day of the offering period.

In January 2014, the Company issued 75,709 shares at a discounted price of $46.36 for the offering period of July 1, 2013 through December 31, 2013. In January 2013, the Company issued 107,535 shares at a discounted price of $31.23 for the offering period of July 1, 2012 through December 31, 2012.

In July 2014, the Company issued 65,867 shares at a discounted price of $58.79 for the offering period of January 1, 2014 through June 30, 2014. In July 2013, the Company issued 110,038 shares at a discounted price of $31.93 for the offering period of January 1, 2013 through June 30, 2013.

The compensation expense recorded related to the ESPP was $308 and $300 for the three months ended September 30, 2014 and 2013, respectively, and $893 and $798 for the nine months ended 2014 and 2013, respectively.

The fair value of each award under the ESPP was estimated at the beginning of each offering period using the Black-Scholes option-pricing model. Expected volatilities are based on implied volatilities from traded options on the Company’s stock and the historical volatility of the Company’s stock. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is based on the current annualized dividend and share price as of the grant date.

10. Stock Repurchase

The following table shows the shares repurchased during the periods indicated: 

Period in 2014	Number of Shares Repurchased		Average Price Paid Per Share		Total Number of  Shares Repurchased as Part of Publicly Announced Programs
January		314,600	$	66.56		314,600
February		—		—		—
March		—		—		—
April		302,000		65.54		302,000
May		292,000		67.22		292,000
June		283,000		67.68		283,000
July		—		—		—
August		386,000		65.07		386,000
September		186,000		65.00		186,000
Total		1,763,600	$	66.18		1,763,600

On November 18, 2013, the Company’s Board of Directors authorized the Company to repurchase up to an additional $600,000 of its outstanding common stock, making the total remaining under the total repurchase authorization $752,436 as of that date.

As of December 31, 2013, there was $704,874 remaining under the total repurchase authorization. During the nine months ended September 30, 2014, the Company repurchased 1,763,600 shares of the Company’s outstanding common stock at a cost of $116,686, exclusive of commissions, leaving $588,188 remaining under the total repurchase authorization at September 30, 2014.

35

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

11. Earnings Per Common Share

The following table presents net income, the weighted average common shares used in calculating basic earnings per common share (“EPS”) and those used in calculating diluted EPS for each period presented below.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Numerator
Net income	$	140,297		$	128,788		$	421,152		$	380,091
Deduct dividends paid		(19,449	)		(18,833	)		(58,382	)		(55,777	)
Undistributed earnings	$	120,848		$	109,955		$	362,770		$	324,314
Denominator
Weighted average shares outstanding used in basic earnings per share		72,182,547			75,544,542			72,561,191			77,662,796
Incremental common shares from:
SARs		—			53,172			—			73,307
PSUs		864,157			859,572			866,171			823,393
ESPPs		—			2,505			—			2,505
Weighted average shares used in diluted earnings per share calculations		73,046,704			76,459,791			73,427,362			78,562,001
Earnings per common share - Basic
Distributed earnings	$	0.27		$	0.25		$	0.79		$	0.71
Undistributed earnings		1.67			1.45			5.01			4.18
Net income	$	1.94		$	1.70		$	5.80		$	4.89
Earnings per common share - Diluted
Distributed earnings	$	0.27		$	0.25		$	0.79		$	0.71
Undistributed earnings		1.65			1.43			4.95			4.13
Net income	$	1.92		$	1.68		$	5.74		$	4.84

There were no anti-dilutive SARs or PSUs outstanding that were not included in the computation of diluted EPS under the treasury stock method during the three and nine months ended September 30, 2014 and 2013.

36

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

12. Retirement and Other Employee Benefits

The components of net periodic benefit cost for the Company’s qualified pension benefits plan, nonqualified pension benefits plan and retirement health benefits plan for the three and nine months ended September 30, 2014 and 2013 were as follows:

	Qualified Pension Benefits						Nonqualified  Pension Benefits (1)				Retirement  Health Benefits
	For the Three Months Ended September 30,						For the Three  Months Ended September 30,				For the Three Months Ended September 30,
	2014			2013			2014		2013		2014			2013
Service cost	$	7,966		$	7,832		$	1,139	$	1,008	$	494		$	581
Interest cost		9,521			8,867			1,636		1,480		959			911
Expected return on plan assets		(12,427	)		(11,036	)		—		—		(766	)		(799	)
Amortization of prior service cost		—			4			218		249		(242	)		(241	)
Amortization of net loss (gain)		1,792			3,801			969		1,182		(208	)		—
Curtailment/settlement charge		—			—			436		—		—			—
Net periodic benefit cost	$	6,852		$	9,468		$	4,398	$	3,919	$	237		$	452
	Qualified  Pension Benefits						Nonqualified  Pension Benefits (1)				Retirement  Health Benefits
	For the Nine Months Ended September 30,						For the Nine Months Ended September 30,				For the Nine Months Ended September 30,
	2014			2013			2014		2013		2014			2013
Service cost	$	24,366		$	26,432		$	3,139	$	3,308	$	1,694		$	2,281
Interest cost		27,821			24,017			4,636		3,880		2,909			2,561
Expected return on plan assets		(37,127	)		(33,186	)		—		—		(2,316	)		(2,199	)
Amortization of prior service cost		—			4			618		599		(692	)		(691	)
Amortization of net loss (gain)		6,342			17,451			2,819		4,382		(308	)		—
Curtailment/settlement charge		—			—			436		—		—			—
Net periodic benefit cost	$	21,402		$	34,718		$	11,648	$	12,169	$	1,287		$	1,952

(1) The Company’s nonqualified plan is unfunded.

Our qualified pension benefits plan (the “Plan”) was under-funded by $9,867 and over-funded by $18,078 (based on the fair value of Plan assets compared to the projected benefit obligation) at September 30, 2014 and December 31, 2013, respectively. This equates to a 99% and 102% funded status at September 30, 2014 and December 31, 2013, respectively. The change in funded status is mainly due to a decrease in the discount rate used to determine the projected benefit obligation. During the first nine months of 2014, $22,500 in cash was contributed to the Plan. Additional cash, up to $7,500, is expected to be contributed to the Plan over the remainder of 2014.

13. Segment Information

The Company has five reportable segments, which are defined based on the nature of the products and services offered: Assurant Solutions, Assurant Specialty Property, Assurant Health, Assurant Employee Benefits, and Corporate & Other. Assurant Solutions provides mobile device protection, debt protection administration, credit-related insurance, warranties and service contracts and pre-funded funeral insurance. Assurant Specialty Property provides lender-placed homeowners insurance, property, appraisal, preservation and valuation services, renters insurance and related products and manufactured housing homeowners insurance. Assurant Health provides individual health and small employer group health insurance. Assurant Employee Benefits primarily provides group dental insurance, group disability insurance and group life insurance. Corporate & Other includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments and interest income earned from short-term investments held. Corporate & Other also includes the amortization of deferred gains associated with the sales of Fortis Financial Group and Long-Term Care through reinsurance agreements.

37

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

The Company evaluates performance of the operating segments based on segment income (loss) after-tax excluding realized gains (losses) on investments. The Company determines reportable segments in a manner consistent with the way the Chief Operating Decision Maker makes operating decisions and assesses performance.

The following tables summarize selected financial information by segment:

	Three Months Ended September 30, 2014
	Solutions		Specialty Property		Health			Employee Benefits		Corporate  & Other			Consolidated
Revenues
Net earned premiums	$	812,512	$	654,889	$	526,705		$	263,703	$	—		$	2,257,809
Net investment income		95,898		24,574		8,312			28,594		4,631			162,009
Net realized gains on investments		—		—		—			—		17,744			17,744
Amortization of deferred gain on disposal of businesses		—		—		—			—		3,645			3,645
Fees and other income		156,807		87,271		10,593			6,305		305			261,281
Total revenues		1,065,217		766,734		545,610			298,602		26,325			2,702,488
Benefits, losses and expenses
Policyholder benefits		257,000		258,344		430,499			177,850		—			1,123,693
Amortization of deferred acquisition costs and value of business acquired		287,110		90,356		1,511			7,732		—			386,709
Underwriting, general and administrative expenses		442,087		258,589		123,176			92,586		37,121			953,559
Interest expense		—		—		—			—		13,776			13,776
Total benefits, losses and expenses		986,197		607,289		555,186			278,168		50,897			2,477,737
Segment income (loss) before provision (benefit) for income tax		79,020		159,445		(9,576	)		20,434		(24,572	)		224,751
Provision (benefit) for income taxes		27,171		54,716		7,813			7,333		(12,579	)		84,454
Segment income (loss) after tax	$	51,849	$	104,729	$	(17,389	)	$	13,101	$	(11,993	)
Net income													$	140,297

38

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

	Three Months Ended September 30, 2013
	Solutions		Specialty Property		Health		Employee Benefits		Corporate  & Other			Consolidated
Revenues
Net earned premiums	$	684,973	$	612,165	$	398,000	$	252,293	$	—		$	1,947,431
Net investment income		92,845		23,819		9,168		28,516		4,861			159,209
Net realized losses on investments		—		—		—		—		(3,631	)		(3,631	)
Amortization of deferred gain on disposal of businesses		—		—		—		—		4,074			4,074
Fees and other income		107,908		29,786		7,630		6,032		211			151,567
Total revenues		885,726		665,770		414,798		286,841		5,515			2,258,650
Benefits, losses and expenses
Policyholder benefits		226,263		228,508		295,534		183,527		—			933,832
Amortization of deferred acquisition costs and value of business acquired		286,343		79,361		266		6,780		—			372,750
Underwriting, general and administrative expenses		325,537		181,172		107,086		87,329		36,202			737,326
Interest expense		—		—		—		—		20,771			20,771
Total benefits, losses and expenses		838,143		489,041		402,886		277,636		56,973			2,064,679
Segment income (loss) before provision (benefit) for income tax		47,583		176,729		11,912		9,205		(51,458	)		193,971
Provision (benefit) for income taxes		11,374		61,679		5,351		3,056		(16,277	)		65,183
Segment income (loss) after tax	$	36,209	$	115,050	$	6,561	$	6,149	$	(35,181	)
Net income												$	128,788

39

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

	Nine Months Ended September 30, 2014
	Solutions		Specialty Property		Health			Employee Benefits		Corporate  & Other			Consolidated
Revenues
Net earned premiums	$	2,335,498	$	1,911,589	$	1,454,726		$	788,192	$	—		$	6,490,005
Net investment income		288,146		77,750		27,538			89,649		14,492			497,575
Net realized gains on investments		—		—		—			—		43,582			43,582
Amortization of deferred gain on disposal of businesses		—		—		—			—		10,949			10,949
Fees and other income		461,268		209,035		27,787			18,332		428			716,850
Total revenues		3,084,912		2,198,374		1,510,051			896,173		69,451			7,758,961
Benefits, losses and expenses
Policyholder benefits		781,908		830,073		1,136,113			533,244		—			3,281,338
Amortization of deferred acquisition costs and value of business acquired		824,023		249,189		1,759			23,109		—			1,098,080
Underwriting, general and administrative expenses		1,238,830		708,837		366,585			274,534		92,349			2,681,135
Interest expense		—		—		—			—		44,617			44,617
Total benefits, losses and expenses		2,844,761		1,788,099		1,504,457			830,887		136,966			7,105,170
Segment income (loss) before provision (benefit) for income tax		240,151		410,275		5,594			65,286		(67,515	)		653,791
Provision (benefit) for income taxes		79,300		139,495		32,554			23,838		(42,548	)		232,639
Segment income (loss) after tax	$	160,851	$	270,780	$	(26,960	)	$	41,448	$	(24,967	)
Net income													$	421,152
	As of September 30, 2014
Segment Assets:
Segment assets, excluding goodwill	$	14,133,609	$	4,060,535	$	1,053,512		$	2,272,749	$	8,335,906		$	29,856,311
Goodwill														816,818
Total assets													$	30,673,129

40

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

	Nine Months Ended September 30, 2013
	Solutions		Specialty Property		Health		Employee Benefits		Corporate  & Other			Consolidated
Revenues
Net earned premiums	$	2,056,300	$	1,727,724	$	1,172,775	$	757,494	$	—		$	5,714,293
Net investment income		282,502		74,723		27,861		88,856		15,176			489,118
Net realized gains on investments		—		—		—		—		30,264			30,264
Amortization of deferred gain on disposal of businesses		—		—		—		—		12,238			12,238
Fees and other income		279,758		82,202		21,061		17,605		500			401,126
Total revenues		2,618,560		1,884,649		1,221,697		863,955		58,178			6,647,039
Benefits, losses and expenses
Policyholder benefits		647,713		649,554		868,307		541,107		1,462			2,708,143
Amortization of deferred acquisition costs and value of business acquired		851,326		229,686		532		20,454		—			1,101,998
Underwriting, general and administrative expenses		969,112		520,307		314,085		266,628		98,235			2,168,367
Interest expense		—		—		—		—		57,369			57,369
Total benefits, losses and expenses		2,468,151		1,399,547		1,182,924		828,189		157,066			6,035,877
Segment income (loss) before provision (benefit) for income tax		150,409		485,102		38,773		35,766		(98,888	)		611,162
Provision (benefit) for income taxes		47,902		169,288		33,472		12,060		(31,651	)		231,071
Segment income (loss) after tax	$	102,507	$	315,814	$	5,301	$	23,706	$	(67,237	)
Net income												$	380,091
	As of December 31, 2013
Segment Assets:
Segment assets, excluding goodwill	$	13,321,648	$	3,858,314	$	884,077	$	2,298,698	$	8,567,391		$	28,930,128
Goodwill													784,561
Total assets												$	29,714,689

14. Commitments and Contingencies

In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which the Company is the reinsurer. These letters of credit are supported by commitments under which the Company is required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. The Company had $17,708 and $17,343 of letters of credit outstanding as of September 30, 2014 and December 31, 2013, respectively.

As previously disclosed, during the first quarter of 2013, the Company and two of its wholly owned subsidiaries in the Assurant Specialty Property segment, American Security Insurance Company (“ASIC”) and American Bankers Insurance Company of Florida (“ABIC”), reached an agreement with the New York Department of Financial Services (the “NYDFS”) regarding the Company’s lender-placed insurance business in the State of New York. Under the terms of the agreement, and without admitting or denying any wrongdoing, ASIC made a $14,000 settlement payment to the NYDFS. In addition, among other things, ASIC and ABIC agreed to modify certain business practices in accordance with requirements that apply to all New York-licensed lender-placed insurers of properties in the state, and filed our new lender-placed program and new rates in New York which were approved in August 2014. The Company also continues to respond to and cooperate with other regulators regarding its lender-placed insurance business.

In addition, as previously disclosed, the Company is involved in a variety of litigation relating to its current and past business operations and may from time to time become involved in other such actions. In particular, the Company is a

41

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

defendant in class actions in a number of jurisdictions regarding its lender-placed insurance programs. These cases allege a variety of claims under a number of legal theories. The plaintiffs seek premium refunds and other relief. The Company continues to defend itself vigorously in these class actions. The Company has accrued an estimated loss for this litigation.

We have participated and may participate in settlements on terms that we consider reasonable given the strength of our defenses. However, the possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and involves significant uncertainty. Consequently, no estimate can be made of any possible loss or range of loss in excess of the above-mentioned accrual.

In July 2007 an Assurant subsidiary acquired Swansure Group, a privately held U.K. company, which owned D&D Homecare Limited (“D&D”). D&D was a packager of mortgages and certain insurance products, including Payment Protection Insurance (“PPI”) policies that, for a period of time, were underwritten by an Assurant subsidiary and sold by various alleged agents, including Carrington Carr Home Finance Limited (“CCHFL”), which is now in administration. In early 2014, as a result of consumer complaints alleging that CCHFL missold certain D&D-packaged PPI policies between August 8, 2003 and November 1, 2004, the U.K. Financial Ombudsman Service (“FOS”) requested that an Assurant subsidiary, Assurant Intermediary Limited (“AIL”), review complaints relating to CCHFL’s sale of such PPI policies. AIL is cooperating with the FOS. The possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and involves significant uncertainty. Consequently, no estimate can be made of any possible loss or range of loss in excess of the above-mentioned accrual.

Although the Company cannot predict the outcome of any action, it is possible that such outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows for an individual reporting period. However, based on currently available information, management does not believe that the pending matters are likely to have a material adverse effect, individually or in the aggregate, on the Company’s financial condition.

15. Income Taxes

During the nine months ended September 30, 2014, the Company converted the Canadian branch operations of certain U.S. companies to foreign corporate entities. This conversion is an election for U.S. tax classification purposes only and requires the Company to record deferred taxes at local tax rates. As a result of this conversion, the Company recorded a one-time benefit of $20,753, which is reflected in the provision for income taxes line item in the consolidated statements of operations.

During the three months ended March 31, 2014, the Company increased its estimated amount of compensation expenses that are non-tax deductible under the Affordable Care Act. Due to this change in estimate, the Company recorded $5,749 of income tax expense in the Assurant Health segment.

16. Catastrophe Bond Program

On January 30, 2012, certain of the Companies’ subsidiaries (“the Subsidiaries”) entered into two reinsurance agreements with Ibis Re II Ltd. (“Ibis Re II”). Ibis Re II is an independent special purpose reinsurance company domiciled in the Cayman Islands. The Ibis Re II agreements provide up to $130,000 of reinsurance coverage for protection against losses over a three-year period from individual hurricane events in Hawaii, Puerto Rico, and along the Gulf and Eastern Coasts of the United States. The agreements expire in February 2015. Ibis Re II financed the property catastrophe reinsurance coverage by issuing $130,000 in catastrophe bonds to unrelated investors (the “Series 2012-1 Notes”).

On June 26, 2013, the Subsidiaries entered into three additional reinsurance agreements with Ibis Re II providing up to $185,000 of reinsurance coverage for protection against losses over a three-year period from individual hurricane events in Hawaii, Puerto Rico, and along the Gulf and Eastern Coasts of the United States. The agreements expire in June 2016. Ibis Re II financed the property catastrophe reinsurance coverage by issuing $185,000 in catastrophe bonds to unrelated investors (the “Series 2013-1 Notes”).

The $315,000 of coverage represents approximately 18% of the expected first event coverage (net of reimbursements of the Florida Hurricane Catastrophe Fund) purchased by the Company in excess of the Company’s anticipated retention.

Under the terms of these reinsurance agreements, the Subsidiaries are obligated to pay annual reinsurance premiums to Ibis Re II for the reinsurance coverage. The reinsurance agreements with Ibis Re II utilize a dual trigger that is based upon an

42

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

(In thousands, except number of shares and per share amounts)

index that is created by applying predetermined percentages to insured industry losses in each state in the covered area as reported by an independent party and the Subsidiaries’ covered losses incurred. Reinsurance contracts that have a separate, pre-identified variable (e.g., a loss-based index) are accounted for as reinsurance if certain conditions are met. In the case of the reinsurance agreements with Ibis Re II, these conditions were met, thus the Company accounted for them as reinsurance in accordance with the guidance for reinsurance contracts.

Amounts payable to the Subsidiaries under the reinsurance agreements will be determined by the index-based losses, which are designed to approximate the Subsidiaries’ actual losses from any covered event. The amount of actual losses and index losses from any covered event may differ. For each covered event, Ibis Re II pays the Subsidiaries the lesser of the covered index-based losses or the Subsidiaries’ actual losses. The principal amount of the catastrophe bonds will be reduced by any amounts paid to the Subsidiaries under the reinsurance agreements. The Subsidiaries have not incurred any losses subject to the reinsurance agreements since their inception.

As of September 30, 2014 and 2013, the Company had not ceded any losses to Ibis Re II.

As with any reinsurance agreement, there is credit risk associated with collecting amounts due from reinsurers. With regard to the Series 2012-1 Notes and Series 2013-1 Notes, the credit risk is mitigated by reinsurance trust accounts for each tranche within each Series. The reinsurance trust accounts have been funded by Ibis Re II with money market funds that invest solely in direct government obligations backed by the U.S. government with maturities of no more than 13 months. The money market funds must have a principal stability rating of at least AAA by Standard & Poor’s.

As a result of an evaluation of the reinsurance agreements with Ibis Re II, the Company concluded that Ibis Re II is a variable interest entity (“VIE”). However, while Ibis Re II is a VIE, the Company concluded that it does not have a significant variable interest in Ibis Re II as the variability in results, caused by the reinsurance agreements, is expected to be absorbed entirely by the bondholders and the Company is not entitled to any residual amounts. Accordingly, the Company is not the primary beneficiary of Ibis Re II and does not consolidate the entities in the Company’s financial statements.

17. Subsequent Events

On October 16, 2014, the Company announced an agreement to sell its general agency business and primary associated insurance carrier, American Reliable Insurance Company (“ARIC”) to Global Indemnity Group, Inc., a subsidiary of Global Indemnity plc, for approximately $114,000 in cash. The business is part of the Assurant Specialty Property segment and offers specialty personal lines and agricultural insurance through general and independent agents. This transaction is anticipated to close in the first quarter of 2015. The sale price is subject to adjustment based on GAAP book value of the business from June 30, 2014 until the closing date of the of the transaction. The initial accounting for this disposition is incomplete primarily due to the timing of the sale date and an allocation of an estimated portion of Assurant Specialty Property’s goodwill. Thus, an estimate of the amount or range of loss cannot be made. As of September 30, 2014, the business had assets, excluding goodwill, of approximately $400,000 (primarily consisting of fixed maturity securities, premiums and accounts receivable and reinsurance recoverables) and liabilities of approximately $285,000 (primarily consisting of unearned premiums, claims and benefits payable and funds held under reinsurance).

On October 31, 2014, the Company acquired CWI Group, a market leading mobile insurance administrator in France, for approximately €56,000 (U.S.D.$71,000), subject to certain conditions with a possible earnout payment based on future performance. The initial accounting for this acquisition is incomplete due to the timing of the acquisition date, thus the estimated range of outcomes for the contingent consideration and the total amount of other intangible assets and goodwill for Assurant Solutions is not yet available.

43

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

(Dollar amounts in thousands, except number of shares and per-share amounts)

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) addresses the financial condition of Assurant, Inc. and its subsidiaries (which we refer to collectively as “Assurant” or “the Company”) as of September 30, 2014, compared with December 31, 2013, and our results of operations for the three and nine months ended September 30, 2014 and 2013. This discussion should be read in conjunction with our MD&A and annual audited consolidated financial statements as of December 31, 2013 included in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the U.S. Securities and Exchange Commission (the “SEC”) and the September 30, 2014 unaudited consolidated financial statements and related notes included elsewhere in this Form 10-Q. The 2013 Annual Report on Form 10-K, Third Quarter 2014 Form 10-Q, and other documents related to the Company are available free of charge through the SEC website at www.sec.gov and through our website at www.assurant.com.

Some statements in this MD&A and elsewhere in this report, particularly those anticipating future financial performance, business prospects, growth and operating strategies and similar matters, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these statements by the use of words such as “will,” “may,” “anticipates,” “expects,” “estimates,” “projects,” “intends,” “plans,” “believes,” “targets,” “forecasts,” “potential,” “approximately,” or the negative version of those words and other words and terms with a similar meaning. 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. Our actual results might differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments.

In addition to the factors described under “Critical Factors Affecting Results,” the following risk factors could cause our actual results to differ materially from those currently estimated by management:

i. actions by governmental agencies or government sponsored entities or other circumstances, including pending regulatory matters affecting our lender-placed insurance business, that could result in reductions of the premium rates we charge or increases in expenses, including claims, commissions, fines, penalties or other expenses;

ii. loss of significant client relationships or business, distribution sources and contracts;

iii. the effects of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (the “Affordable Care Act”), and the rules and regulations thereunder, on our health and employee benefits businesses;

iv. unfavorable outcomes in litigation and/or regulatory investigations that could negatively affect our business and reputation;

v. current or new laws and regulations that could increase our costs and decrease our revenues;

vi. significant competitive pressures in our businesses;

vii. failure to attract and retain sales representatives or key managers;

viii. losses due to natural or man-made catastrophes;

ix. a decline in our credit or financial strength ratings (including the risk of ratings downgrades in the insurance industry);

x. deterioration in the Company’s market capitalization compared to its book value that could result in an impairment of goodwill;

xi. risks related to our international operations, including fluctuations in exchange rates;

xii. general global economic, financial market and political conditions (including difficult conditions in financial, capital, credit and currency markets, the global economic slowdown, fluctuations in interest rates or a prolonged period of low interest rates, monetary policies, unemployment and inflationary pressure);

xiii. failure to find and integrate suitable acquisitions and new ventures;

xiv. cyber security threats and cyber attacks;

xv. failure to effectively maintain and modernize our information systems;

xvi. data breaches compromising client information and privacy;

xvii. failure to predict or manage benefits, claims and other costs;

xviii. uncertain tax positions and unexpected tax liabilities;

44

xix. inadequacy of reserves established for future claims;

xx. risks related to outsourcing activities;

xxi. unavailability, inadequacy and unaffordable pricing of reinsurance coverage;

xxii. diminished value of invested assets in our investment portfolio (due to, among other things, volatility in financial markets; the global economic slowdown; credit, currency and liquidity risk; other than temporary impairments and increases in interest rates);

xxiii. insolvency of third parties to whom we have sold or may sell businesses through reinsurance or modified co-insurance;

xxiv. inability of reinsurers to meet their obligations;

xxv. credit risk of some of our agents in Assurant Specialty Property and Assurant Solutions;

xxvi. inability of our subsidiaries to pay sufficient dividends;

xxvii. failure to provide for succession of senior management and key executives; and

xxviii. cyclicality of the insurance industry.

For a more detailed discussion of the risk factors that could affect our actual results, please refer to “Item 1A—Risk Factors” and “Item 7—MD&A Critical Factors Affecting Results” in our 2013 Annual Report on Form 10-K.

General

We report our results through five segments: Assurant Solutions, Assurant Specialty Property, Assurant Health, Assurant Employee Benefits, and Corporate and Other. The Corporate and Other segment includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments and investment 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 and Long Term Care, through reinsurance agreements as described below.

The following discussion relates to the three and nine months ended September 30, 2014 (“Third Quarter 2014” and “Nine Months 2014”) and the three and nine months ended September 30, 2013 (“Third Quarter 2013” and “Nine Months 2013”).

Executive Summary

Consolidated net income increased $11,509, or 9%, to $140,297 in Third Quarter 2014, compared with $128,788 of net income for Third Quarter 2013. For Nine Months 2014, net income increased $41,061 or 11%, to $421,152 for Nine Months 2014, compared with $380,091 for Nine Months 2013.

Assurant Solutions net income increased $15,640, or 43%, to $51,849 for Third Quarter 2014 from $36,209 for Third Quarter 2013. The increase was primarily driven by improved results in our domestic mobile business which benefitted from growth in covered devices in the U.S., continued favorable domestic loss experience, and additional income from client marketing programs.

Third Quarter 2014 net earned premiums increased 19% and fees and other income increased 45% compared with Third Quarter 2013, primarily due to the growth of our mobile protection programs globally, including our acquisition of Lifestyle Services Group last year and growth at a large service contract client.

Overall, we expect Assurant Solutions’ 2014 net earned premiums and fees to increase compared to 2013, primarily driven by growth in mobile business. The timing of new product introductions, client marketing programs and seasonal trends in mobile may cause fourth quarter results to vary.

Assurant Specialty Property net income decreased $10,321, or 9%, to $104,729 for Third Quarter 2014 from $115,050 for Third Quarter 2013, primarily due to the impact of lower premium rates in the lender-placed insurance business. There were no reportable catastrophes in either Third Quarter 2014 or Third Quarter 2013. Non-catastrophe losses increased due to higher frequency of claims from properties that have moved to foreclosure.

Net earned premiums and fees in this segment increased in Third Quarter 2014 compared with Third Quarter 2013, mainly attributable to the residual benefit of the previously disclosed discontinuation of a client quota share reinsurance agreement and the Field Asset Services and StreetLinks acquisitions. These items were partially offset by lower premium rates.

45

The Third Quarter 2014 expense ratio increased 640 basis points compared with the Third Quarter 2013. The increase was primarily due to growth in fee-based businesses, which have higher expense ratios than our insurance products. This increase was offset by additional revenue.

In addition, as previously disclosed, a client decided during Third Quarter 2014 to transfer a portion of their lender-placed portfolio resulting in a decrease of approximately 600,000 loans with higher-than-average placement rates. We anticipate the impact of this change will begin in the fourth quarter of 2014.

Overall, we expect Assurant Specialty Property’s 2014 net earned premiums and fees to increase from 2013 driven by growth in targeted areas, including contributions from recent acquisitions, as well as lender-placed insurance. We expect results in our lender-placed insurance business to continue to be affected by catastrophe losses, lower placement and premium rates and the loss of loans mentioned above. In addition, we expect our expense ratio to increase, primarily reflecting a higher mix of fee income business and additional costs to support lender-placed insurance business. We also expect our non-catastrophe loss ratio to remain elevated due to higher claims frequency and lower premium rates.

Assurant Health Third Quarter 2014 results decreased $23,950, or 365%, to a net loss of $17,389 compared with Third Quarter 2013 net income of $6,561. The decrease was primarily attributable to higher than anticipated claims from qualified Affordable Care Act policies as well as a higher effective tax rate, due to non-deductible compensation expenses. Pricing assumptions were made during last year’s open enrollment about the risk pool of consumers buying policies in a guaranteed issue environment. At that time, we believed that existing policyholders who were required to transition to Affordable Care Act plans would be healthier than new enrollees. However, rule changes announced in November 2013 and March 2014 allowed policyholders to extend their existing coverage through 2016. Therefore, Affordable Care Act business had worse morbidity characteristics than we had assumed, and 2014 policy pricing could not be modified.

In January 2015, we will reset pricing for all Affordable Care Act policies. We believe our rate actions, plan design changes and increased scale through our distribution on select public exchanges will drive improved results.

We expect Assurant Health’s full year 2014 net earned premiums and fees to increase compared to 2013, reflecting sales of new individual major medical policies under the Affordable Care Act. Segment results to reflect higher claims experience under the Affordable Care Act plans, additional tax liabilities, due to non-deductible compensation expenses and higher commission expenses on new sales.

At Assurant Employee Benefits, net income increased $6,952, or 113%, to $13,101 for Third Quarter 2014 from $6,149 for Third Quarter 2013. Improved results were primarily attributable to improved disability loss experience.

Third Quarter 2014 voluntary net earned premiums increased 12% compared to Third Quarter 2013, reflecting our strategic focus on this market. During Third Quarter 2014, we renewed our dental network agreement with Aetna for another three years, providing a broader network of dentists for our customers.

We expect Assurant Employee Benefits’ full year 2014 net earned premiums and fees to increase compared to 2013 due to growth in voluntary products. We also expect continued expense reduction actions to offset higher expenditures to support growth in our voluntary business. Results will continue to be affected by employment trends and capital market conditions.

Critical Factors Affecting Results and Liquidity

Our results depend on the appropriateness of our product pricing, underwriting and the accuracy of our methodology for the establishment of reserves for future policyholder benefits and claims, returns on and values of invested assets and our ability to manage our expenses. Factors affecting these items, including unemployment, difficult conditions in financial markets and the global economy, may have a material adverse effect on our results of operations or financial condition. For more information on these factors, see “Item 1A—Risk Factors” and “Item 7—MD&A Critical Factors Affecting Results” in our 2013 Annual Report on Form 10-K.

Management believes the Company will have sufficient liquidity to satisfy its needs over the next twelve months including the ability to pay interest on our debt and dividends on our common stock.

For the nine months ended September 30, 2014, net cash provided by operating activities, including the effect of exchange rate changes on cash and cash equivalents, totaled $495,904; net cash used in investing activities totaled $143,528 and net cash used in financing activities totaled $658,294. We had $1,411,266 in cash and cash equivalents as of September 30, 2014. Please see “—Liquidity and Capital Resources,” below for further details.

46

Critical Accounting Policies and Estimates

Our 2013 Annual Report on Form 10-K describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition and liquidity. The accounting policies and estimation process described in the 2013 Annual Report on Form 10-K were consistently applied to the unaudited interim consolidated financial statements for Third Quarter 2014.

The Affordable Care Act introduced new and significant premium stabilization programs in 2014. These programs required the Company to record amounts to our consolidated financial statements based on assumptions and estimates which could materially change as experience develops. Please refer to Assurant Health’s results of operations section further below in this Item 2 for details on these programs and the estimates recorded.

47

Assurant Consolidated

Overview

The table below presents information regarding our consolidated results of operations:

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2014		2013			2014		2013
Revenues:
Net earned premiums	$	2,257,809	$	1,947,431		$	6,490,005	$	5,714,293
Net investment income		162,009		159,209			497,575		489,118
Net realized gains (losses) on investments		17,744		(3,631	)		43,582		30,264
Amortization of deferred gain on disposal of businesses		3,645		4,074			10,949		12,238
Fees and other income		261,281		151,567			716,850		401,126
Total revenues		2,702,488		2,258,650			7,758,961		6,647,039
Benefits, losses and expenses:
Policyholder benefits		1,123,693		933,832			3,281,338		2,708,143
Selling, underwriting and general expenses (1)		1,340,268		1,110,076			3,779,215		3,270,365
Interest expense		13,776		20,771			44,617		57,369
Total benefits, losses and expenses		2,477,737		2,064,679			7,105,170		6,035,877
Income before provision for income taxes		224,751		193,971			653,791		611,162
Provision for income taxes		84,454		65,183			232,639		231,071
Net income	$	140,297	$	128,788		$	421,152	$	380,091

(1) Includes amortization of deferred acquisition costs (“DAC”) and value of business acquired (“VOBA”).

The following discussion provides a general overall analysis of how the consolidated results were affected by our four operating segments and our Corporate and Other segment for Third Quarter 2014 and Nine Months 2014 and Third Quarter 2013 and Nine Months 2013. Please see the discussion that follows, for each of these segments, for a more detailed analysis of the fluctuations.

For the Three Months Ended September 30, 2014 Compared to the Three Months Ended September 30, 2013

Net Income

Net income increased $11,509, or 9%, to $140,297 in Third Quarter 2014, compared with $128,788 for Third Quarter 2013. The increase was mainly due to improved results in our Assurant Solutions and Assurant Employee Benefits segments, lower expenses in the Corporate and Other segment as well as an increase in net realized gains on investments. These items were partially offset by lower net income at Assurant Health and Assurant Specialty Property.

For the Nine Months Ended September 30, 2014 Compared to the Nine Months Ended September 30, 2013

Net Income

Net income increased $41,061, or 11%, to $421,152 for Nine Months 2014, compared with $380,091 for Nine Months 2013. In addition to the items noted above, Nine Months 2014 includes a $20,753 one-time tax benefit related to the conversion of the Canadian branch operations of certain U.S. companies to foreign corporate entities. Please see Note 15 to the Consolidated Financial Statements for further information.

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Assurant Solutions

Overview

The table below presents information regarding Assurant Solutions’ segment results of operations:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues:
Net earned premiums	$	812,512		$	684,973		$	2,335,498		$	2,056,300
Net investment income		95,898			92,845			288,146			282,502
Fees and other income		156,807			107,908			461,268			279,758
Total revenues		1,065,217			885,726			3,084,912			2,618,560
Benefits, losses and expenses:
Policyholder benefits		257,000			226,263			781,908			647,713
Selling, underwriting and general expenses		729,197			611,880			2,062,853			1,820,438
Total benefits, losses and expenses		986,197			838,143			2,844,761			2,468,151
Segment income before provision for income taxes		79,020			47,583			240,151			150,409
Provision for income taxes		27,171			11,374			79,300			47,902
Segment net income	$	51,849		$	36,209		$	160,851		$	102,507
Net earned premiums:
Domestic:
Credit	$	39,534		$	41,186		$	123,329		$	122,502
Service contracts		429,178			341,237			1,197,198			1,010,650
Other (1)		20,052			21,860			55,299			63,153
Total Domestic		488,764			404,283			1,375,826			1,196,305
International:
Credit		82,255			93,503			248,220			286,243
Service contracts		217,601			163,536			639,664			499,730
Other (1)		9,100			7,543			24,909			22,823
Total International		308,956			264,582			912,793			808,796
Preneed		14,792			16,108			46,879			51,199
Total	$	812,512		$	684,973		$	2,335,498		$	2,056,300
Fees and other income:
Domestic:
Debt protection	$	7,092		$	7,511		$	21,533		$	21,533
Service contracts		95,782			64,928			292,228			141,479
Other (1)		1,514			1,253			6,367			5,352
Total Domestic		104,388			73,692			320,128			168,364
International		24,965			13,604			61,310			32,191
Preneed		27,454			20,612			79,830			79,203
Total	$	156,807		$	107,908		$	461,268		$	279,758
Gross written premiums (2):
Domestic:
Credit	$	75,155		$	100,969		$	245,046		$	285,585
Service contracts		844,584			548,033			2,254,152			1,510,389
Other (1)		23,751			33,383			65,500			90,273
Total Domestic		943,490			682,385			2,564,698			1,886,247
International:
Credit		218,348			238,621			670,472			724,982
Service contracts		200,173			187,135			616,928			545,085
Other (1)		17,397			12,632			43,885			36,729
Total International		435,918			438,388			1,331,285			1,306,796
Total	$	1,379,408		$	1,120,773		$	3,895,983		$	3,193,043
Preneed (face sales)	$	237,471		$	259,500		$	739,369		$	745,891
Combined ratios (3):
Domestic		95.3	%		99.3	%		93.5	%		98.0	%
International		99.1	%		100.8	%		100.9	%		101.7	%

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(1) This includes emerging products and run-off product lines.

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

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

For the Three Months Ended September 30, 2014 Compared to the Three Months Ended September 30, 2013

Net Income

Segment net income increased $15,640, or 43%, to $51,849 for Third Quarter 2014 from $36,209 for Third Quarter 2013. The increase was primarily driven by improved results in our domestic mobile business, reflecting growth in mobile subscribers, contributions from ongoing client marketing programs and continued favorable loss experience.

Total Revenues

Total revenues increased $179,491, or 20%, to $1,065,217 for Third Quarter 2014 from $885,726 for Third Quarter 2013. The increase was driven primarily by higher net earned premiums in our domestic and international service contract businesses, reflecting continued growth in mobile subscribers. Fees and other income increased $48,899 primarily driven by mobile programs and from the Lifestyle Services Group (“LSG”) acquisition during the fourth quarter of 2013.

Gross written premiums increased $258,635, or 23%, to $1,379,408 for Third Quarter 2014 from $1,120,773 for Third Quarter 2013. Gross written premiums from our domestic service contract business increased $296,551 driven by growth in mobile subscribers. Gross written premiums from our international service contract business increased $13,038 due to growth in the number of global mobile subscribers, the LSG acquisition and new and existing clients in Latin America. This increase was partially offset by the unfavorable impact of changes in foreign exchange rates, primarily in Latin America.

Preneed face sales decreased $22,029, or 8%, to $237,471 for Third Quarter 2014 from $259,500 for Third Quarter 2013. This decrease was mostly attributable to a change in product offerings and a client’s temporary operational change.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased $148,054, or 18%, to $986,197 for Third Quarter 2014 from $838,143 for Third Quarter 2013. Policyholder benefits increased $30,737 primarily related to the LSG acquisition, partially offset by favorable loss experience in our mobile business. Selling, underwriting and general expenses increased $117,317, mostly related to growth in our domestic mobile business and the LSG acquisition.

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For the Nine Months Ended September 30, 2014 Compared to the Nine Months Ended September 30, 2013

Net Income

Segment net income increased $58,344, or 57%, to $160,851 for Nine Months 2014 from $102,507 for Nine Months 2013. The increase was primarily driven by improved results in our domestic mobile business, reflecting growth in mobile subscribers, contributions from ongoing client marketing programs and continued favorable loss experience.

Total Revenues

Total revenues increased $466,352, or 18%, to $3,084,912 for Nine Months 2014 from $2,618,560 for Nine Months 2013. The increase was driven by higher net earned premiums in our domestic and international service contract businesses, reflecting continued growth in mobile subscribers. Fees and other income increased $181,510 primarily driven by mobile programs and the LSG acquisition.

Gross written premiums increased $702,940, or 22%, to $3,895,983 for Nine Months 2014 from $3,193,043 for Nine Months 2013. Gross written premiums from our domestic service contract business increased $743,763 driven by growth in mobile subscribers. Gross written premiums from our international service contract business increased $71,843 due to growth in mobile subscribers, the LSG acquisition and new and existing clients in Latin America. This increase was partially offset by the unfavorable impact of changes in foreign exchange rates, primarily in Latin America.

Preneed face sales decreased $6,522, or 1%, to $739,369 for Nine Months 2014 from $745,891 for Nine Months 2013. This decrease was mostly attributable to a change in product offerings and a client’s temporary operational change. On June 25, 2014, we extended our exclusive distribution partnership with Service Corporation International, the largest funeral provider in North America, for an additional 10 years, through September 29, 2024.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased $376,610, or 15%, to $2,844,761 for Nine Months 2014 from $2,468,151 for Nine Months 2013. Policyholder benefits increased $134,195 primarily related to the LSG acquisition, partially offset by favorable loss experience in our mobile business. Selling, underwriting and general expenses increased $242,415, mostly related to growth in our domestic mobile business and the LSG acquisition.

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Assurant Specialty Property

Overview

The table below presents information regarding Assurant Specialty Property’s segment results of operations:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues:
Net earned premiums	$	654,889		$	612,165		$	1,911,589		$	1,727,724
Net investment income		24,574			23,819			77,750			74,723
Fees and other income		87,271			29,786			209,035			82,202
Total revenues		766,734			665,770			2,198,374			1,884,649
Benefits, losses and expenses:
Policyholder benefits		258,344			228,508			830,073			649,554
Selling, underwriting and general expenses		348,945			260,533			958,026			749,993
Total benefits, losses and expenses		607,289			489,041			1,788,099			1,399,547
Segment income before provision for income taxes		159,445			176,729			410,275			485,102
Provision for income taxes		54,716			61,679			139,495			169,288
Segment net income	$	104,729		$	115,050		$	270,780		$	315,814
Net earned premiums:
Homeowners (lender-placed and voluntary)	$	456,369		$	435,370		$	1,341,495		$	1,210,242
Manufactured housing (lender-placed and voluntary)		59,942			56,806			177,824			167,723
Other (1)		138,578			119,989			392,270			349,759
Total	$	654,889		$	612,165		$	1,911,589		$	1,727,724
Ratios:
Loss ratio (2)		39.4	%		37.3	%		43.4	%		37.6	%
Expense ratio (3)		47.0	%		40.6	%		45.2	%		41.4	%
Combined ratio (4)		81.8	%		76.2	%		84.3	%		77.3	%

(1) This primarily includes lender-placed flood, miscellaneous specialty property and multi-family housing insurance products.

(2) The loss ratio is equal to policyholder benefits divided by net earned premiums.

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

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

Regulatory Matters

As previously disclosed, on March 21, 2013, the Company and two of its wholly owned subsidiaries, American Security Insurance Company (“ASIC”) and American Bankers Insurance Company of Florida (“ABIC”), reached an agreement with the New York Department of Financial Services (the “NYDFS”) regarding the Company’s lender-placed insurance business in the State of New York. Under the terms of the agreement, and without admitting or denying any wrongdoing, ASIC made a $14,000 (non tax-deductible) settlement payment to the NYDFS. In addition, among other things, ASIC and ABIC agreed to modify certain business practices in accordance with requirements that apply to all New York-licensed lender-placed insurers of properties in the state, and filed their new lender-placed program and new rates in New York, which were approved in August 2014. The changes to the program affect annual lender-placed hazard and real estate owned policies issued in the State of New York, which accounted for approximately $91,000 and $101,000 of Assurant Specialty Property’s net earned premiums for Nine Months 2014 and full year 2013, respectively.

On October 7, 2013, the Company reached an agreement with the Florida Office of Insurance Regulation to file for a 10% reduction in lender-placed hazard insurance rates in Florida. The rates have been filed and approved, and were effective for new and renewing policies starting in the first quarter of 2014. As part of the agreement, ASIC eliminated commissions and client quota-share reinsurance arrangements to meet new requirements of lender-placed insurance providers in Florida. ASIC recorded approximately $354,000 and $547,000 of direct earned premiums in Florida for Nine Months 2014 and full year 2013, respectively, for the type of policies that are subject to the rate reduction.

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At the federal level, in early 2013, the Consumer Financial Protection Bureau published mortgage servicing guidelines that incorporate certain requirements mandated by the Dodd-Frank Act. In addition, the Federal Housing Finance Agency (“FHFA”) issued new mortgage servicer guidelines, which became effective in June 2014, that eliminate lender-placed insurance-related commissions and client quota share arrangements on properties securing government-sponsored entity loans. At the directive of the FHFA, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation each issued bulletins in December 2013 implementing these mortgage servicer guidelines.

Lender-placed insurance products accounted for 72% and 73% of net earned premiums for Nine Months 2014 and full year 2013, respectively. The approximate corresponding contributions to the segment net income in these periods were 78% and 87%, respectively. The portion of total segment net income attributable to lender-placed products may vary substantially over time depending on the frequency, severity and location of catastrophic losses, the cost of catastrophe reinsurance and reinstatement coverage, the variability of claim processing costs and client acquisition costs, and other factors. In addition, we expect placement rates for these products to decline.

For the Three Months Ended September 30, 2014 Compared to the Three Months Ended September 30, 2013

Net Income

Segment net income decreased $10,321, or 9%, to $104,729 for Third Quarter 2014 from $115,050 for Third Quarter 2013 primarily due to the impact of lower premium rates in the lender-placed insurance business. In addition, there were no reportable catastrophes in either Third Quarter 2014 or Third Quarter 2013. Non-catastrophe losses increased due to higher frequency of claims from properties that have moved to foreclosure.

Total Revenues

Total revenues increased $100,964, or 15%, to $766,734 for Third Quarter 2014 from $665,770 for Third Quarter 2013. The increase was primarily due to growth in lender-placed homeowners insurance net earned premiums, as well as fee income from the acquisitions of Field Asset Services and StreetLinks. Growth in lender-placed homeowners insurance is due to the previously disclosed discontinuation of a client quota share reinsurance agreement and is partially offset by the impact of lower premium rates.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased $118,248, or 24%, to $607,289 for Third Quarter 2014 from $489,041 for Third Quarter 2013. The loss ratio increased to 39.4% from 37.3% primarily due to the impact of lower premium rates in the lender-placed insurance business and higher non-catastrophe losses. There were no reportable catastrophe losses in Third Quarter 2014 or Third Quarter 2013. Reportable catastrophe losses include only individual catastrophic events that generated losses to the Company in excess of $5,000, pre-tax and net of reinsurance. The expense ratio increased to 47.0% in Third Quarter 2014 from 40.6% in Third Quarter 2013 mainly due to growth in fee-based businesses and lower premium rates in the lender-placed insurance business.

For the Nine Months Ended September 30, 2014 Compared to the Nine Months Ended September 30, 2013

Net Income

Segment net income decreased $45,034, or 14%, to $270,780 for Nine Months 2014 from $315,814 for Nine Months 2013 primarily due to higher non-catastrophe losses in our lender-placed business. These losses were driven by severe weather and high severity fire claims. In addition, Nine Months 2013 includes a $14,000 (non-tax deductible) regulatory settlement with the NYDFS.

Total Revenues

Total revenues increased $313,725, or 17%, to $2,198,374 for Nine Months 2014 from $1,884,649 for Nine Months 2013. The increase was primarily due to growth in lender-placed homeowners insurance net earned premiums, as well as fee income from the acquisitions of Field Asset Services and StreetLinks. Growth in lender-placed homeowners insurance was primarily due to the previously disclosed discontinuation of a client quota share reinsurance agreement and loan portfolios added in 2013 and was partially offset by the impact of lower premium rates.

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Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased $388,552, or 28%, to $1,788,099 for Nine Months 2014 from $1,399,547 for Nine Months 2013. The loss ratio increased to 43.4% for Nine Months 2014 from 37.6% for Nine Months 2013 due to higher non-catastrophe losses from severe weather, high severity fire claims and lower premium rates from the new lender-placed homeowners insurance product. Reportable catastrophe losses for Nine Months 2014 were $28,411 compared to $29,503 in Nine Months 2013. Reportable catastrophe losses include only individual catastrophic events that generated losses to the Company in excess of $5,000, pre-tax and net of reinsurance. The expense ratio increased to 45.2% for Nine Months 2014 from 41.4% for Nine Months 2013 primarily due to growth in fee-based businesses, lower premium rates and additional costs to support our lender-placed insurance business. Nine Months 2013 included a $14,000 (non-tax deductible) regulatory settlement with the NYDFS.

Assurant Health

Overview

The table below presents information regarding Assurant Health’s segment results of operations:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues:
Net earned premiums	$	526,705		$	398,000		$	1,454,726		$	1,172,775
Net investment income		8,312			9,168			27,538			27,861
Fees and other income		10,593			7,630			27,787			21,061
Total revenues		545,610			414,798			1,510,051			1,221,697
Benefits, losses and expenses:
Policyholder benefits		430,499			295,534			1,136,113			868,307
Selling, underwriting and general expenses		124,687			107,352			368,344			314,617
Total benefits, losses and expenses		555,186			402,886			1,504,457			1,182,924
Segment (loss) income before provision for income taxes		(9,576	)		11,912			5,594			38,773
Provision for income taxes		7,813			5,351			32,554			33,472
Segment net (loss) income	$	(17,389	)	$	6,561		$	(26,960	)	$	5,301
Net earned premiums:
Individual	$	421,625		$	294,730		$	1,148,933		$	872,385
Small employer group		105,080			103,270			305,793			300,390
Total	$	526,705		$	398,000		$	1,454,726		$	1,172,775
Insured lives by product line:
Individual								839			753
Small employer group								124			116
Total								963			869
Ratios:
Loss ratio (1)		81.7	%		74.3	%		78.1	%		74.0	%
Expense ratio (2)		23.2	%		26.5	%		24.8	%		26.4	%
Combined ratio (3)		103.3	%		99.3	%		101.5	%		99.1	%

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

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

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

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The Affordable Care Act

Most provisions of the Affordable Care Act have now taken effect. Given the sweeping nature of the changes arising from the Affordable Care Act, our results of operations and financial position could be materially adversely affected. For more information, see Item 1A, “Risk Factors - Risk related to our industry - Reform of the health insurance industry could materially reduce the profitability of certain of our businesses or render them unprofitable” in our 2013 Annual Report on Form 10-K.

Because all individuals now have a guaranteed right to purchase health insurance policies, the Affordable Care Act introduced new and significant premium stabilization programs in 2014: reinsurance, risk adjustment, and risk corridor (together, the “3 Rs”). These programs, discussed in further detail below, are meant to mitigate the potential adverse impact to individual health insurers as a result of Affordable Care Act provisions that became effective January 1, 2014.

Reinsurance

This is a transitional program for 2014-2016, with decreasing impact over the three years. All commercial individual and group medical health plans are required to contribute to the funding of the program. Only individual health plans that are compliant with the essential health benefits of the Affordable Care Act are eligible to receive benefits from the program.

We are required to make contributions, which are recorded quarterly, based on both our Affordable Care Act and non-Affordable Care Act business. Contributions based on our non-Affordable Care Act business are included in selling, underwriting and general expenses and contributions based on our Affordable Care Act business are included as ceded premiums. Recoveries are recorded quarterly as ceded policyholder benefits and reflect the anticipated experience of our Affordable Care Act plans based on our analysis of current and historical claim data.

For the Third Quarter 2014 and Nine Months 2014, we recorded reinsurance contributions of $3,605 and $13,733 and reinsurance recoveries of $64,335 and $144,346, respectively, in our consolidated statements of operations. As of September 30, 2014, we recorded reinsurance contributions payable of $13,733 and reinsurance recoverables of $144,346 on our consolidated balance sheets. Both contributions and recoveries for the 2014 program are scheduled to be settled in 2015.

Risk adjustment

This is a permanent program to transfer funds between health insurers based on the average health risk scores of their Affordable Care Act insured populations. Insurers with below-average risk scores will contribute into the pool. Insurers with above-average risk scores will receive payments out of the pool.

Risk scores are evaluated at the state, market, and legal entity level for Affordable Care Act-compliant policies. Risk adjustment amounts payable and receivable are reflected as adjustments to net earned premiums, and are recorded quarterly based on our current estimated loss experience of our Affordable Care Act business.

Based on the demographics of our Affordable Care Act population, extensive analytical evaluations, current and historical claim data as well as other internal and external data sources, external market studies and other published data, we believe that our average risk scores will be significantly higher than the industry averages.

For Third Quarter 2014 and Nine Months 2014, we recorded net risk adjustment premiums of $51,550 and $113,088, respectively, in our consolidated statements of operations. As of September 30, 2014, we carried net risk adjustment receivables of $113,088 on our consolidated balance sheets. Risk transfer payments and receipts for the 2014 program are scheduled to be settled in 2015.

Risk corridor

This is a temporary risk-sharing program for 2014-2016. Based on ratios of allowable costs to target costs as defined by the Affordable Care Act, health insurers will make payments to the Department of Health and Human Services (“HHS”) or receive funds from HHS. Because Assurant Health is not participating in any insurance marketplaces for 2014, risk corridors have no impact on our 2014 operations. Because the reinsurance and risk-adjustment programs are brand new and historical results are not available, estimates of amounts receivable from them are subject to considerable uncertainty. Actual amounts received may vary substantially from our estimates.

For the Three Months Ended September 30, 2014 Compared to the Three Months Ended September 30, 2013

Net (Loss) Income

Segment results decreased $23,950, or 365%, to a net loss of $17,389 for Third Quarter 2014 from net income of $6,561 for Third Quarter 2013. The decrease was primarily attributable to increased claims from Affordable Care Act qualified policies, reflecting the guaranteed issue requirements and the health profiles of many first-time buyers, as well as a higher effective tax rate related to the Affordable Care Act.

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Total Revenues

Total revenues increased $130,812, or 32%, to $545,610 for Third Quarter 2014 from $414,798 for Third Quarter 2013. Net earned premiums from our individual medical business increased $126,895, or 43%, due to growth in individual major medical product sales, including estimated recoveries from the Affordable Care Act’s risk adjustment program.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased $152,300, or 38%, to $555,186 for Third Quarter 2014 from $402,886 for Third Quarter 2013. Policyholder benefits increased $134,965, or 46%, while the loss ratio increased to 81.7% from 74.3%. The increases in policyholder benefits and the loss ratio were primarily attributable to higher volumes of business and increased claims on individual major medical policies. Selling, underwriting and general expenses increased $17,335, or 16%, primarily due to commissions on new sales and $4,952 related to the annual fee on health insurers mandated by the Affordable Care Act effective January 1, 2014.

For the Nine Months Ended September 30, 2014 Compared to the Nine Months Ended September 30, 2013

Net (Loss) Income

Segment results decreased $32,261, or 609%, to a net loss of $26,960 for Nine Months 2014 from net income of $5,301 for Nine Months 2013. The decrease was primarily attributable to increased claims from the new Affordable Care Act qualified policies, reflecting the guaranteed issue requirements and the health profiles of many first-time buyers, as well as a higher effective tax rate related to the Affordable Care Act.

Total Revenues

Total revenues increased $288,354, or 24%, to $1,510,051 for Nine Months 2014 from $1,221,697 for Nine Months 2013. Net earned premiums from our individual medical business increased $276,548, or 32%, due to growth in individual major medical product sales, including estimated recoveries from the Affordable Care Act’s risk adjustment program.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased $321,533, or 27%, to $1,504,457 for Nine Months 2014 from $1,182,924 for Nine Months 2013. Policyholder benefits increased $267,806, or 31%, while the loss ratio increased to 78.1% from 74.0%. The increases in policyholder benefits and the loss ratio were primarily attributable to higher volumes of business and increased claims on individual major medical policies. Selling, underwriting and general expenses increased $53,727, or 17%, primarily due to higher commissions on new sales and $14,885 related to the annual fee on health insurers mandated by the Affordable Care Act effective January 1, 2014.

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Assurant Employee Benefits

Overview

The table below presents information regarding Assurant Employee Benefits’ segment results of operations:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues:
Net earned premiums	$	263,703		$	252,293		$	788,192		$	757,494
Net investment income		28,594			28,516			89,649			88,856
Fees and other income		6,305			6,032			18,332			17,605
Total revenues		298,602			286,841			896,173			863,955
Benefits, losses and expenses:
Policyholder benefits		177,850			183,527			533,244			541,107
Selling, underwriting and general expenses		100,318			94,109			297,643			287,082
Total benefits, losses and expenses		278,168			277,636			830,887			828,189
Segment income before provision for income taxes		20,434			9,205			65,286			35,766
Provision for income taxes		7,333			3,056			23,838			12,060
Segment net income	$	13,101		$	6,149		$	41,448		$	23,706
Net earned premiums:
Group dental	$	98,576		$	95,497		$	294,091		$	286,562
Group disability		102,242			99,820			307,682			301,295
Group life		50,184			47,796			150,267			143,890
Group supplemental and vision products		12,701			9,180			36,152			25,747
Total	$	263,703		$	252,293		$	788,192		$	757,494
Voluntary	$	111,179		$	99,001		$	328,398		$	292,621
Employer-paid and other		152,524			153,292			459,794			464,873
Total	$	263,703		$	252,293		$	788,192		$	757,494
Ratios:
Loss ratio (1)		67.4	%		72.7	%		67.7	%		71.4	%
Expense ratio (2)		37.2	%		36.4	%		36.9	%		37.0	%

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

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

For the Three Months Ended September 30, 2014 Compared to the Three Months Ended September 30, 2013

Net Income

Segment net income increased $6,952, or 113%, to $13,101 for Third Quarter 2014 from $6,149 for Third Quarter 2013. Improved results were primarily attributable to improved disability loss experience.

Total Revenues

Total revenues increased $11,761, or 4%, to $298,602 for Third Quarter 2014 from $286,841 for Third Quarter 2013. Third Quarter 2014 net earned premium increased $11,410 or 5%. The increase in net earned premiums was primarily driven by voluntary products which increased $12,178, or 12%, in Third Quarter 2014 partially offset by declines in employer paid products.

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Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased $532, or less than 1%, to $278,168 for Third Quarter 2014 from $277,636 for Third Quarter 2013. The loss ratio decreased to 67.4% from 72.7% primarily driven by favorable disability loss experience. Disability results include the effect of a previously disclosed increase in the reserve discount rate for new long-term disability claims. The expense ratio increased to 37.2% in Third Quarter 2014 compared to 36.4% in Third Quarter 2013 primarily reflecting increased employee-related benefit costs.

For the Nine Months Ended September 30, 2014 Compared to the Nine Months Ended September 30, 2013

Net Income

Segment net income increased $17,742, or 75%, to $41,448 for Nine Months 2014 from $23,706 for Nine Months 2013. Results for Nine Months 2014 were driven by favorable loss experience in all major product lines. Nine Months 2014 results include an increase in the reserve discount rate primarily for new long-term disability claims.

Total Revenues

Total revenues increased $32,218, or 4%, to $896,173 for Nine Months 2014 from $863,955 for Nine Months 2013. Net earned premiums growth was driven by voluntary products which increased $35,777, or 12%, partially offset by declines in employer paid products.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased $2,698, or less than 1%, to $830,887 for Nine Months 2014 from $828,189 for Nine Months 2013. The loss ratio decreased to 67.7% from 71.4% driven by favorable experience in all major product lines. The expense ratio remained relatively consistent at 36.9% for Nine Months 2014 compared with 37.0% for Nine Months 2013.

Assurant Corporate & Other

The table below presents information regarding the Corporate & Other segment’s results of operations:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues:
Net investment income	$	4,631		$	4,861		$	14,492		$	15,176
Net realized gains (losses) on investments		17,744			(3,631	)		43,582			30,264
Amortization of deferred gain on disposal of businesses		3,645			4,074			10,949			12,238
Fees and other income		305			211			428			500
Total revenues		26,325			5,515			69,451			58,178
Benefits, losses and expenses:
Policyholder benefits		—			—			—			1,462
Selling, underwriting and general expenses		37,121			36,202			92,349			98,235
Interest expense		13,776			20,771			44,617			57,369
Total benefits, losses and expenses		50,897			56,973			136,966			157,066
Segment loss before benefit for income taxes		(24,572	)		(51,458	)		(67,515	)		(98,888	)
Benefit for income taxes		(12,579	)		(16,277	)		(42,548	)		(31,651	)
Segment net loss	$	(11,993	)	$	(35,181	)	$	(24,967	)	$	(67,237	)

For the Three Months Ended September 30, 2014 Compared to the Three Months Ended September 30, 2013

Net Loss

Segment results improved $23,188, or 66%, to net loss of $11,993 for Third Quarter 2014 compared with a net loss of $35,181 for Third Quarter 2013. The improvement was primarily due to a $13,894 (after-tax) change in net realized gains (losses) on investments, lower employee-related benefit costs and impact of expense reduction initiatives.

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Total Revenues

Total revenues increased $20,810, or 377%, to $26,325 for Third Quarter 2014 compared with $5,515 for Third Quarter 2013. The increase is primarily related to net realized gains on investments of $17,744 in Third Quarter 2014 compared with net realized losses on investments of $3,631 in Third Quarter 2013.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses decreased $6,076, or 11%, to $50,897 for Third Quarter 2014 compared with $56,973 for Third Quarter 2013. Interest expense declined $6,995 primarily due to repayment of the 2004 Senior Notes with an aggregate principal amount of $500,000 on February 18, 2014. In addition, Third Quarter 2014 had lower selling, underwriting and general expenses compared with Third Quarter 2013 primarily due to lower employee-related benefit costs and expense reduction initiatives. Included in Third Quarter 2014 selling, underwriting and general expenses is $5,737, related to a change in the estimated fair value of the net put option to acquire the remaining interests of Iké Asistencia (“Iké”).

For the Nine Months Ended September 30, 2014 Compared to the Nine Months Ended September 30, 2013

Net Loss

Segment results improved $42,270, or 63%, to net loss of $24,967 for Nine Months 2014 compared with net loss of $67,237 for Nine Months 2013. The decrease is primarily due to the $20,753 one-time tax benefit related to the conversion of the Canadian branch operations of certain U.S. companies to foreign corporate entities. Also contributing to the improvement was a $8,657 (after-tax) change in net realized gains on investments, lower employee-related benefit costs and impact of expense reduction initiatives.

Total Revenues

Total revenues increased $11,273, or 19%, to $69,451 for Nine Months 2014 compared with $58,178 for Nine Months 2013. The increase is primarily related to an $13,318 increase in net realized gains on investments.

Total Benefits, Losses and Expenses

Total expenses decreased $20,100, or 13%, to $136,966 for Nine Months 2014 compared with $157,066 for Nine Months 2013. Interest expense declined $12,752 primarily due to repayment of the 2004 Senior Notes with an aggregate principal amount of $500,000 on February 18, 2014. In addition, Nine Months 2014 had lower selling, underwriting and general expenses compared with Nine Months 2013 primarily due to lower employee-related benefit costs and impact of expense reduction initiatives. Included in Nine Months 2014 selling, underwriting and general expenses is $5,737, related to a change in the estimated fair value of the net put option to acquire the remaining interests of Iké.

Investments

The Company had total investments of $14,608,814 and $14,244,015 as of September 30, 2014 and December 31, 2013, respectively. For more information on our investments see Note 5 to the Notes to Consolidated Financial Statements included elsewhere in this report.

The following table shows the credit quality of our fixed maturity securities portfolio as of the dates indicated:

	As of
Fixed Maturity Securities by Credit Quality (Fair Value)	September 30, 2014				December 31, 2013
Aaa / Aa / A	$	7,463,125	64.2	%	$	7,214,256	63.9	%
Baa		3,410,759	29.3	%		3,316,035	29.4	%
Ba		488,339	4.2	%		523,175	4.6	%
B and lower		261,786	2.3	%		238,409	2.1	%
Total	$	11,624,009	100.0	%	$	11,291,875	100.0	%

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Major categories of net investment income were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Fixed maturity securities	$	129,782		$	130,891		$	393,302		$	398,514
Equity securities		7,197			6,628			20,772			20,371
Commercial mortgage loans on real estate		18,997			18,920			56,034			57,720
Policy loans		778			812			2,087			2,544
Short-term investments		697			284			1,277			1,374
Other investments		6,108			4,440			29,470			16,051
Cash and cash equivalents		4,860			3,813			13,981			10,721
Total investment income		168,419			165,788			516,923			507,295
Investment expenses		(6,410	)		(6,579	)		(19,348	)		(18,177	)
Net investment income	$	162,009		$	159,209		$	497,575		$	489,118

Net investment income increased $2,800, or 2%, to $162,009 for Third Quarter 2014 compared with $159,209 for Third Quarter 2013. The increase for the period was primarily related to $1,598 in additional investment income from real estate joint venture partnerships. Excluding the investment income from the real estate joint venture partnerships, net investment income remained relatively consistent. Net investment income increased $8,457, or 2%, to $497,575 for Nine Months 2014 compared with $489,118 for Nine Months 2013. The increase for the period was primarily related to $11,410 in additional investment income from real estate joint venture partnerships and $1,760 in additional investment income related to the loss recovery on certain mortgage-backed securities as a result of a trust settlement agreement. Excluding the investment income from the real estate joint venture partnerships and the trust settlement agreement, net investment income decreased $4,713, primarily reflecting lower investment yields.

As of September 30, 2014, the Company owned $189,186 of securities guaranteed by financial guarantee insurance companies. Included in this amount was $177,990 of municipal securities, whose credit rating was A+ with the guarantee, but would have had a rating of A without the guarantee.

The Company has exposure to sub-prime and related mortgages within our fixed maturity securities portfolio. At September 30, 2014, approximately 3% of our residential mortgage-backed holdings had exposure to sub-prime mortgage collateral. This represented approximately 0.3% of the total fixed income portfolio and 2% of the total unrealized gain position. Of the securities with sub-prime exposure, approximately 11% are rated as investment grade. All residential mortgage-backed securities, including those with sub-prime exposure, are reviewed as part of the ongoing other-than-temporary impairment monitoring process.

Collateralized Transactions

The Company engages in transactions in which fixed maturity securities, primarily bonds issued by the U.S. government and government agencies and authorities, and U.S. corporations, are loaned to selected broker/dealers. Collateral, greater than or equal to 102% of the fair value of the securities lent, plus accrued interest, is received in the form of cash and cash equivalents held by a custodian bank for the benefit of the Company. The use of cash collateral received is unrestricted. The Company reinvests the cash collateral received, generally in investments of high credit quality that are designated as available-for-sale. The Company monitors the fair value of securities loaned and the collateral received, with additional collateral obtained, as necessary. The Company is subject to the risk of loss to the extent there is a loss on the re-investment of cash collateral.

As of September 30, 2014 and December 31, 2013, our collateral held under securities lending agreements, of which its use is unrestricted, was $95,977 and $95,215, respectively, and is included in the consolidated balance sheets under the collateral held/pledged under securities agreements. Our liability to the borrower for collateral received was $95,973 and $95,206, respectively, and is included in the consolidated balance sheets under obligation under securities agreements. The difference between the collateral held and obligations under securities lending is recorded as an unrealized gain (loss) and is included as part of AOCI. There was one security in an unrealized loss position as of September 30, 2014 and it has been in an unrealized loss position for less than 12 months. All securities were in an unrealized gain position as of December 31, 2013. The Company includes the available-for-sale investments purchased with the cash collateral in its evaluation of other-than-temporary impairments.

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Cash proceeds that the Company receives as collateral for the securities it lends and subsequent repayment of the cash are regarded by the Company as cash flows from financing activities, since the cash received is considered a borrowing. Since the Company reinvests the cash collateral generally in investments that are designated as available-for-sale, the reinvestment is presented as cash flows from investing activities.

Liquidity and Capital Resources

Regulatory Requirements

Assurant, Inc. is a holding company and, as such, has limited direct operations of its own. Our holding company’s assets consist primarily of the capital stock of our subsidiaries. Accordingly, our holding company’s 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. For further information on pending amendments to state insurance holding company laws, including the NAIC’s “Solvency Modernization Initiative,” see “Item 1A—Risk Factors—Risks Related to Our Industry—Changes in regulation may reduce our profitability and limit our growth” in our 2013 Annual Report on Form 10-K. Along with solvency regulations, the primary driver in determining the amount of capital used for dividends is the level of capital needed to maintain desired financial strength ratings from A.M. Best.

It is possible that regulators or rating agencies could become more conservative in their methodology and criteria, including increasing capital requirements for our insurance subsidiaries which, in turn, could negatively affect our capital resources. On November 18, 2013, A.M. Best affirmed the financial strength ratings of Assurant’s businesses with a stable outlook. At that time, A.M. Best also affirmed Assurant’s debt rating of bbb and revised the outlook from stable to positive. On July 1, 2014, Standard and Poor’s (“S&P”) affirmed the financial strength ratings of Assurant’s businesses with a stable outlook. At that time, S&P also affirmed Assurant’s debt rating of BBB+ and stable outlook. On July 31, 2014, Moody’s Investor Services (“Moody’s”) downgraded the insurance financial strength ratings of two of Assurant’s rated life and health subsidiaries from Baa1 to Baa2 due to the negative impact of provisions of the Affordable Care Act on the subsidiaries’ business profile and earnings prospects. Moody’s also revised the outlook on these two subsidiaries to stable. For further information on our ratings and the risks of ratings downgrades, see “Item 1—Business” and “Item 1A—Risk Factors—Risks Related to Our Company—A.M. Best, Moody’s and S&P rate the financial strength of our insurance company subsidiaries, and a decline in these ratings could affect our standing in the insurance industry and cause our sales and earnings to decrease” in our 2013 Annual Report on Form 10-K. For 2014, the maximum amount of dividends our U.S. domiciled insurance subsidiaries could pay, under applicable laws and regulations without prior regulatory approval, is approximately $484,000.

Liquidity

As of September 30, 2014, we had $562,472 in holding company capital. We use the term “holding company capital” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc., out of a total of $780,899, that we are not otherwise holding for a specific purpose as of the balance sheet date, but can be used for stock repurchases, stockholder dividends, acquisitions, and other corporate purposes. $250,000 of the $562,472 of holding company capital is intended to serve as a buffer against remote risks (such as large-scale hurricanes). Dividends or returns of capital, net of infusions, made to the holding company from its operating companies were $252,340 for Nine Months 2014. In 2013, dividends, net of infusions, made to the holding company from its operating companies were $607,295. We use these cash inflows primarily to pay expenses, to make interest payments on indebtedness, to make dividend payments to our stockholders, to make subsidiary capital contributions, to fund acquisitions and to repurchase our outstanding shares.

In addition to paying expenses and making interest payments on indebtedness, our capital management strategy provides for several uses for the cash generated by our subsidiaries, including without limitation, returning capital to shareholders through share repurchases and dividends, investing in our businesses to support growth in targeted areas, and making prudent and opportunistic acquisitions. We made share repurchases and paid dividends to our stockholders of $175,104 and $472,308 during Nine Months 2014 and the year ended December 31, 2013, respectively. We expect 2014 net dividends from the operating segments to approximate their earnings subject to the growth of the businesses, rating agency and regulatory capital requirements and investment performance.

The primary sources of funds for our subsidiaries consist of premiums and fees collected, proceeds from the sales and maturity of investments and net 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 investment income.

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We conduct periodic asset liability studies to measure the duration of our insurance liabilities, to develop optimal asset portfolio maturity structures for our significant lines of business and ultimately to assess that cash flows are sufficient to meet the timing of cash needs. These studies are conducted in accordance with formal company-wide Asset Liability Management (“ALM”) guidelines.

To complete a study for a particular line of business, models are developed to project asset and liability cash flows and balance sheet items under a large, varied set of plausible economic scenarios. These models consider many factors including the current investment portfolio, the required capital for the related assets and liabilities, our tax position and projected cash flows from both existing and projected new business.

Alternative asset portfolio structures are analyzed for significant lines of business. An investment portfolio maturity structure is then selected from these profiles given our return hurdle and risk preference. Sensitivity testing of significant liability assumptions and new business projections is also performed.

Our liabilities generally have limited policyholder optionality, which means that the timing of payments is relatively insensitive to the interest rate environment. In addition, our investment portfolio is largely comprised of highly liquid fixed maturity securities with a sufficient component of such securities invested that are near maturity which may be sold with minimal risk of loss to meet cash needs. Therefore, we believe we have limited exposure to disintermediation risk.

Generally, our subsidiaries’ premiums, fees and investment income, along with planned asset sales and maturities, provide sufficient cash to pay claims and expenses. However, there may be instances when unexpected cash needs arise in excess of that available from usual operating sources. In such instances, we have several options to raise needed funds, including selling assets from the subsidiaries’ investment portfolios, using holding company cash (if available), issuing commercial paper, or drawing funds from our revolving credit facility. In addition, we have filed an automatically effective shelf registration statement on Form S-3 with the SEC. This registration statement allows us to issue equity, debt or other types of securities through one or more methods of distribution. The terms of any offering would be established at the time of the offering, subject to market conditions. If we decide to make an offering of securities, we will consider the nature of the cash requirement as well as the cost of capital in determining what type of securities we may offer.

We paid dividends of $0.27 per common share on September 9, 2014 to stockholders of record as of August 25, 2014. 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; legal, tax, regulatory and contractual restrictions on the payment of dividends; and other factors our Board of Directors deems relevant.

On November 18, 2013, our Board of Directors authorized the Company to repurchase up to an additional $600,000 of its outstanding common stock. As of December 31, 2013, there was $704,874 remaining under the total repurchase authorization. During the nine months ended September 30, 2014, we repurchased 1,763,600 shares of our outstanding common stock at a cost of $116,686, exclusive of commissions. As of September 30, 2014, $588,188 remained under the total repurchase authorization. The timing and the amount of future repurchases will depend on market conditions and other factors.

Management believes the Company will have sufficient liquidity to satisfy its needs over the next twelve months, including the ability to pay interest on our Senior Notes and dividends on our common shares.

Retirement and Other Employee Benefits

Our qualified pension benefits plan (the “Plan”) was under-funded by $9,867 and over-funded by $18,078 (based on the fair value of Plan assets compared to the projected benefit obligation) at September 30, 2014 and December 31, 2013, respectively. This equates to a 99% and 102% funded status at September 30, 2014 and December 31, 2013, respectively. The change in funded status is mainly due to a decrease in the discount rate used to determine the projected benefit obligation.

In prior years we established a funding policy in which service cost plus 15% of qualified plan deficit will be contributed annually. During Nine Months 2014, we contributed $22,500 in cash to the Plan. Additional cash, up to $7,500, is expected to be contributed to the Plan over the remainder of 2014.

As of January 1, 2014, the Assurant Pension and Executive Pension Plans are no longer offered to new hires. Current employees will not be affected and will continue to accrue benefits under the Assurant Pension and Executive Pension Plans. Employees who are currently eligible but not yet participating will remain eligible to participate in the future once they meet the Assurant Pension and Executive Pension Plan requirements.

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Commercial Paper Program

On September 16, 2014, we entered into a five-year unsecured $400,000 revolving credit agreement (“2014 Credit Facility”) with a syndicate of banks arranged by JP Morgan Chase Bank, N.A. and Wells Fargo, N.A. The 2014 Credit Facility replaces our prior four-year $350,000 revolving credit facility (“2011 Credit Facility”), which was entered into on September 21, 2011 and was scheduled to expire in September 2015. The 2011 Credit Facility terminated upon the effectiveness of the 2014 Credit Facility. The 2014 Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and/or letters of credit from a sole issuing bank in an aggregate amount of $400,000 and is available until September 2019, provided we are in compliance with all covenants. The 2014 Credit Facility has a sublimit for letters of credit issued thereunder of $50,000. The proceeds of these loans may be used for our commercial paper program or for general corporate purposes. The Company may increase the total amount available under the 2014 Credit Facility to $525,000 subject to certain conditions. No bank is obligated to provide commitments above their share of the $400,000 facility.

Our commercial paper program requires us to maintain liquidity facilities either in an available amount equal to any outstanding notes from the program or in an amount sufficient to maintain the ratings assigned to the notes issued from the program. Our commercial paper is rated AMB-2 by A.M. Best, P-2 by Moody’s and A-2 by S&P. Our subsidiaries do not maintain commercial paper or other borrowing facilities. This program is currently backed up by a $400,000 senior revolving credit facility, of which $395,740 was available at September 30, 2014, due to $4,260 of outstanding letters of credit related to this program.

We did not use the commercial paper program during the nine months ended September 30, 2014 or 2013, and there were no amounts outstanding relating to the commercial paper program at September 30, 2014 and December 31, 2013. The Company made no borrowings using either the 2011 Credit Facility or the 2014 Credit Facility and no loans are outstanding at September 30, 2014.

The 2014 Credit Facility contains restrictive covenants and requires that the Company maintain certain specified minimum ratios and thresholds. Among others, these covenants include maintaining a maximum debt to capitalization ratio and a minimum consolidated adjusted net worth. At September 30, 2014, we were in compliance with all covenants, minimum ratios, and thresholds.

Senior Notes

On March 28, 2013, we issued two series of senior notes with an aggregate principal amount of $700,000 (the “2013 Senior Notes”). The first series is $350,000 in principal amount, bears interest at 2.50% per year and is payable in a single installment due March 15, 2018. The second series is $350,000 in principal amount, bears interest at 4.00% per year and is payable in a single installment due March 15, 2023.

The net proceeds from the sale of the 2013 Senior Notes was $698,093, which represents the principal amount less the discount before offering expenses. The Company used the net proceeds of the 2013 Senior Notes for general corporate purposes, including to repay $500,000 of debt that matured in February 2014.

Interest on our 2013 Senior Notes is payable semi-annually on March 15 and September 15 of each year. The interest expense incurred related to the 2013 Senior Notes was $5,745 and $5,870 for the three months ended September 30, 2014 and 2013, respectively, and $17,234 and $11,613 for the nine months ended September 30, 2014 and 2013, respectively. There was $948 of accrued interest at both September 30, 2014 and 2013. The 2013 Senior Notes are unsecured obligations and rank equally with all of the Company’s other senior unsecured indebtedness. The Company may redeem each series of the 2013 Senior Notes in whole or in part at any time and from time to time before their maturity at the redemption price set forth in the Indenture.

In addition, as of December 31, 2013, we had two series of senior notes outstanding in an aggregate principal amount of $975,000 (the “2004 Senior Notes”). The first series was $500,000 in principal amount, bore interest at 5.63% per year and was repaid on February 18, 2014. The second series is $475,000 in principal amount, bears interest at 6.75% per year and is due February 15, 2034.

Interest on our 2004 Senior Notes is payable semi-annually on February 15 and August 15 of each year. The interest expense incurred related to the 2004 Senior Notes was $8,031 and $14,714 for the three months ended September 30, 2014 and $27,383 and $44,795 for the nine months ended September 30, 2014 and 2013, respectively. There was $4,008 and $7,523 of accrued interest at September 30, 2014 and 2013, respectively. The 2004 Senior Notes are unsecured obligations and rank equally with all of our other senior unsecured indebtedness. The 2004 Senior Notes are not redeemable prior to maturity.

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Cash Flows

We monitor cash flows at the consolidated, holding company 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, making adjustments to the forecasts when needed.

The table below shows our recent net cash flows:

	For the Nine Months Ended September 30,
Net cash provided by (used in):	2014			2013
Operating activities (1)	$	495,904		$	709,179
Investing activities		(143,528	)		(641,591	)
Financing activities		(658,294	)		309,705
Net change in cash	$	(305,918	)	$	377,293

(1) Includes effect of exchange rate changes on cash and cash equivalents.

We typically generate operating cash inflows from premiums collected from our insurance products and income received from our investments while outflows consist of policy acquisition costs, benefits paid, and operating expenses. These net cash flows are then invested to support the obligations of our insurance products and required capital supporting these products. Our cash flows from operating activities are affected by the timing of premiums, fees, and investment income received and expenses paid.

Net cash provided by operating activities was $495,904 and $709,179 for Nine Months 2014 and Nine Months 2013, respectively. The decrease in cash provided by operating activities was primarily due to changes in the timing of payments and by amounts yet to be recovered under the 3 R’s program, partially offset by increased net written premiums across all segments. For more information on the 3 R’s, please refer to Assurant Health’s Results of Operations section in this Item 2.

Net cash used in investing activities was $143,528 and $641,591 for Nine Months 2014 and Nine Months 2013, respectively. The decrease in cash used in investing activities was primarily due to the change in short-term investments and fewer purchases of fixed maturity securities. These increases were partially offset by lower sales of fixed maturity securities and increased acquisition activity in 2014 compared to 2013.

Net cash (used in) provided by financing activities was $(658,294) and $309,705 for Nine Months 2014 and Nine Months 2013, respectively. The cash used in financing activities during Nine Months 2014 was primarily due to the repayment of $467,330 of 2004 Senior Notes, which represents $500,000 in principal less amounts repurchased in 2013 and the payment of a contingent liability related to the acquisition of LSG. The cash provided by financing activities during Nine Months 2013 was primarily due to the issuance of the 2013 Senior Notes. The Company received proceeds of $698,093 from this transaction, which represents the principal amount less the discount before offering expenses.

The table below shows our cash outflows for interest and dividends for the periods indicated:

	For the Nine Months Ended September 30,
	2014		2013
Interest paid on debt	$	68,875	$	70,741
Common stock dividends		58,382		55,777
Total	$	127,257	$	126,518

Letters of Credit

In the normal course of business, we issue letters of credit primarily to support reinsurance arrangements. These letters of credit are supported by commitments with financial institutions. We had $17,708 and $17,343 of letters of credit outstanding as of September 30, 2014 and December 31, 2013.

Recent Accounting Pronouncements

For a discussion of recent accounting pronouncements, see Note 3 to the Consolidated Financial Statements.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our 2013 Annual Report on Form 10-K described our Quantitative and Qualitative Disclosures About Market Risk. There were no material changes to the assumptions or risks during Third Quarter 2014.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of September 30, 2014. They have concluded that the Company’s disclosure controls and procedures are effective, and provide reasonable assurance that information the Company is required to disclose in its reports under the Exchange Act is recorded, processed, summarized and reported accurately. They also have concluded that information that the Company is required to disclose is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure.

Internal Control over Financial Reporting

During the quarter ended September 30, 2014, we made no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II

OTHER INFORMATION

Item 1. Legal Proceedings.

The Company is involved in litigation in the ordinary course of business, both as a defendant and as a plaintiff, and may from time to time be subject to a variety of legal and regulatory actions relating to our current and past business operations. See Note 14 to the Notes to Consolidated Financial Statements for a description of certain matters, which is incorporated herein by reference. Although the Company cannot predict the outcome of litigation, regulatory examinations or investigations, it is possible that the outcome of such matters could have a material adverse effect on the Company’s consolidated results of operations or cash flows for an individual reporting period. However, based on currently available information, management does not believe that any pending matter is likely to have a material adverse effect, individually or in the aggregate, on the Company’s financial condition.

Item 1A. Risk Factors.

Certain factors may have a material adverse effect on our business, financial condition and results of operations and you should carefully consider them. It is not possible to predict or identify all such factors. For discussion of our potential risks or uncertainties, please refer to “Item 1A-Risk Factors” included in our 2013 Annual Report on Form 10-K. Except as set forth in the following updated risk factor, there have been no material changes to the risk factors disclosed in our 2013 Annual Report on Form 10-K.

Our business is subject to risks related to litigation and regulatory actions.

From time to time, we may be subject to a variety of legal and regulatory actions relating to our current and past business operations, including, but not limited to:

• actions by regulatory authorities that may restrict our ability to increase or maintain our premium rates, require us to reduce premium rates, imposes fines or penalties and result in other expenses;

• market conduct examinations, for which we are required to pay the expenses of the regulator as well as our own expenses, and which may result in fines, penalties, or other adverse consequences;

• disputes regarding our lender-placed insurance products including those relating to rates, agent compensation, consumer disclosure, continuous coverage requirements, loan tracking services and other services that we provide to mortgage servicers;

• disputes over coverage or claims adjudication;

• disputes over our treatment of claims, in which states or insureds may allege that we failed to make required payments or to meet prescribed deadlines for adjudicating claims;

• disputes regarding sales practices, disclosures, premium refunds, licensing, regulatory compliance, underwriting and compensation arrangements;

• disputes with agents, brokers or network providers over compensation and termination of contracts and related claims;

• disputes alleging bundling of credit insurance and warranty products with other products provided by financial institutions;

• disputes with tax and insurance authorities regarding our tax liabilities;

• disputes relating to customers’ claims that the customer was not aware of the full cost or existence of the insurance or limitations on insurance coverage; and

• industry-wide investigations regarding business practices including, but not limited to, the use and the marketing of certain types of insurance policies or certificates of insurance.

The premiums we charge are subject to review by regulators. If they consider our loss ratios to be too low, they could require us to reduce our rates. Significant rate reductions could materially reduce our profitability.

On October 7, 2013, American Security Insurance Company (“ASIC”), a wholly owned subsidiary of the Company, reached an agreement with the Florida Office of Insurance Regulation (“FOIR”) to file for a 10% reduction in lender-placed hazard insurance rates in that state. These rates became effective for new and renewing policies starting in first quarter 2014. As part of the agreement, ASIC eliminated commissions and client quota-share reinsurance arrangements to meet new requirements of lender-placed insurance providers in Florida. ASIC recorded approximately $354,000 and $547,000 of direct earned premiums in Florida for the nine months ended September 2014 and full year 2013, respectively, for the types of policies that are subject to the rate reduction.

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In addition, on March 21, 2013, the Company and two of its wholly owned subsidiaries, ASIC and American Bankers Insurance Company of Florida (“ABIC”), reached an agreement with the New York Department of Financial Services (“NYDFS”) regarding the Company’s lender-placed insurance business in the State of New York. Under the terms of the agreement, and without admitting or denying any wrongdoing, ASIC made a $14,000 (non tax-deductible) settlement payment to the NYDFS. In addition, among other things, ASIC and ABIC agreed to modify certain business practices in accordance with requirements that apply to all New York-licensed lender-placed insurers of properties in the state, and filed their new lender-placed program and new rates in New York. In August 2014, the NYDFS approved the new rates. The changes to the program affect annual lender-placed hazard and real estate owned policies issued in the State of New York, which accounted for approximately $91,000 and $101,000 of Assurant Specialty Property’s net earned premiums for the nine months ended September 2014 and full year 2013, respectively.

In October 2012, ASIC reached an agreement with the California Department of Insurance to reduce premium rates for lender-placed hazard insurance products by 30.5%. The rate reduction reflects factors specific to California such as continued favorable loss experience in the state and different assumptions about future experience compared to our previous rate filing. The new rates in California began to apply to policies newly issued or renewed with effective dates on or after January 19, 2013. ASIC recorded approximately $69,000 and $106,000 of net earned premiums ($68,000 and $99,000 of gross written premium) in California for the type of policies that are subject to the rate reduction for the nine months ended September 2014 and full year 2013, respectively.

Lender-placed insurance products accounted for approximately 72% and 73% of Assurant Specialty Property’s net earned premiums for the nine months ended September 2014 and full year 2013, respectively. The approximate corresponding contributions to segment net income in these periods were 78% and 87%, respectively. The portion of total segment net income attributable to lender-placed products may vary substantially over time depending on the frequency, severity and location of catastrophic losses, the cost of catastrophe reinsurance and reinstatement coverage, the variability of claim processing costs and client acquisition costs, and other factors. In addition, we expect placement rates for these products to decline.

The Company files rates with the state departments of insurance in the ordinary course of business. As previously disclosed, in addition to this routine correspondence, the Company has been engaged in discussions and proceedings with certain state regulators regarding our lender-placed insurance business. The results of such reviews may vary. It is possible that other state departments of insurance and regulatory authorities may choose to initiate or continue to review the appropriateness of the Company’s premium rates for its lender-placed insurance products. If, in the aggregate further reviews by state departments of insurance lead to significant decreases in premium rates for the Company’s lender-placed insurance products, our results of operations could be materially adversely affected.

Further, actions by certain regulators—including but not limited to the NYDFS, FOIR and Federal Housing Finance Agency (“FHFA”)—may cause changes to the structure of the lender-placed insurance industry, including the arrangements under which we issue insurance and track coverage on mortgaged properties. These changes could materially adversely affect the results of operations of Assurant Specialty Property and the results of operations and financial condition of the Company.

In addition, the Company is involved in a variety of litigation relating to its current and past business operations and may from time to time become involved in other such actions. In particular, the Company is a defendant in class actions in a number of jurisdictions regarding its lender-placed insurance programs. These cases allege a variety of claims under a number of legal theories. The plaintiffs seek premium refunds and other relief. The Company continues to defend itself vigorously in these class actions and, as appropriate, to enter into settlements.

We participate in settlements on terms that we consider reasonable in light of the strength of our defenses; however, the results of any pending or future litigation and regulatory proceedings are inherently unpredictable and involve significant uncertainty. Unfavorable outcomes in litigation or regulatory proceedings, or significant problems in our relationships with regulators, could materially adversely affect our results of operations and financial condition, our reputation, our ratings, and our ability to continue to do business. They could also expose us to further investigations or litigation. In addition, certain of our clients in the mortgage and credit card and banking industries are the subject of various regulatory investigations and litigation regarding mortgage lending practices, credit insurance, debt-deferment and debt cancelation products, and the sale of ancillary products, which could indirectly affect our businesses.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Repurchase of Equity Securities:

Period in 2014	Total Number of Shares Repurchased		Average Price Paid Per  Share		Total Number of  Shares Repurchased as Part of Publicly Announced Programs (1)		Approximate Dollar Value  of Shares that May Yet  be Repurchased Under the Programs  (1)
January 1-31		314,600	$	66.56		314,600	$	683,941
February 1-28		—		—		—		683,941
March 1-31		—		—		—		683,941
April 1-30		302,000		65.54		302,000		664,154
May 1-31		292,000		67.22		292,000		644,532
June 1-30		283,000		67.68		283,000		625,384
July 1-31		—		—		—		625,384
August 1-31		386,000		65.07		386,000		600,275
September 1-30		186,000		65.00		186,000		588,188
Total		1,763,600	$	66.18		1,763,600	$	588,188

(1) Shares purchased pursuant to the November 18, 2013 publicly announced share repurchase authorization of up to $600,000 of outstanding common stock.

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Item 6. Exhibits.

Pursuant to the rules and regulations of the SEC, the Company has filed or incorporated by reference certain agreements as exhibits to this quarterly report on Form 10-Q. These agreements may contain representations and warranties by the parties. These representations and warranties have been made solely for the benefit of the other party or parties to such agreements and (i) may have been qualified by disclosures made to such other party or parties, (ii) were made only as of the date of such agreements or such other date(s) as may be specified in such agreements and are subject to more recent developments, which may not be fully reflected in the Company’s public disclosure, (iii) may reflect the allocation of risk among the parties to such agreements and (iv) may apply materiality standards different from what may be viewed as material to investors. Accordingly, these representations and warranties may not describe the Company’s actual state of affairs at the date hereof and should not be relied upon.

The following exhibits either (a) are filed with this report or (b) have previously been filed with the SEC and are incorporated herein by reference to those prior filings. Exhibits are available upon request at the investor relations section of our website at www.assurant.com. Our website is not a part of this report and is not incorporated by reference in this report.

10.1	Credit Agreement, dated as of September 16, 2014, among Assurant, Inc., the lenders party thereto, JP Morgan Chase Bank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as syndication agent.
12.1	Computation of Ratio of Consolidated Earnings to Fixed Charges.
31.1	Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer.
32.1	Certification of Chief Executive Officer of Assurant, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer of Assurant, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statement of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ASSURANT, INC.
Date: November 4, 2014	By:	/s/     ROBERT B. POLLOCK
	Name:	Robert B. Pollock
	Title:	Chief Executive Officer
Date: November 4, 2014	By:	/s/    CHRISTOPHER J. PAGANO
	Name:	Christopher J. Pagano
	Title:	Executive Vice President, Chief Financial Officer and Treasurer

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EX-10.1

Exhibit 10.1

CREDIT AGREEMENT

dated as of September 16, 2014 among

ASSURANT, INC.,

as Borrower,

THE LENDERS Party Hereto,

JPMORGAN CHASE BANK, N.A.

as Administrative Agent,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Syndication Agent

J.P. MORGAN SECURITIES LLC and

WELLS FARGO SECURITIES, LLC,

as Joint Lead Arrangers and Joint Bookrunners

BMO HARRIS BANK N.A., KEYBANK NATIONAL ASSOCIATION and U.S. BANK

NATIONAL ASSOCIATION,

as Co-Documentation Agents

SECTION 1.	DEFINITIONS	1
1.1	Certain Defined Terms	1
1.2	Accounting Terms; Utilization of GAAP for Purposes of Calculations Under Agreement	19
1.3	Other Definitional Provisions and Rules of Construction	20
SECTION 2.	AMOUNT AND TERMS OF COMMITMENTS AND LOANS	20
2.1	Commitment; Making of Loan; Notes	20
2.2	Interest on the Loans	22
2.3	Fees	24
2.4	Repayments and Prepayments; General Provisions Regarding Payments	25
2.5	Increased Costs; Taxes	26
2.6	Special Provisions Governing LIBOR Loans	30
2.7	Replacement of a Lender	31
2.8	Mitigation	32
2.9	Increase of the Commitments	32
2.10	Letters of Credit	34
2.11	Reimbursement of LC Disbursements, Etc.	37
2.12	Defaulting Lenders	41
SECTION 3.	CONDITIONS PRECEDENT	42
3.1	Conditions to Effectiveness	42
3.2	Conditions to each Loan	44
SECTION 4.	BORROWER’S REPRESENTATIONS AND WARRANTIES	44
4.1	Organization, Powers, Qualification, Good Standing, Business and Subsidiaries	44
4.2	Authorization of Borrowing, etc.	45
4.3	Financial Condition	45
4.4	No Material Adverse Change	46
4.5	Title to Properties; Liens	46
4.6	No Litigation; Compliance with Laws	47
4.7	Payment of Taxes	47
4.8	No Default	47
4.9	Governmental Regulation	47
4.10	Securities Activities	48
4.11	Employee Benefit Plans	48
4.12	Environmental Protection	48
4.13	Solvency	49
4.14	Restrictions	49
4.15	Insurance Licenses	49
4.16	Disclosure	49
4.17	Anti-Corruption Laws and Sanctions	50
SECTION 5.	BORROWER’S AFFIRMATIVE COVENANTS	50
5.1	Financial Statements and Other Reports	50
5.2	Books and Records	52
5.3	Existence	52
5.4	Insurance	53

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5.5	Payment of Taxes and Claims	53
5.6	Compliance with Laws	53
5.7	Use of Proceeds	53
5.8	Claims Pari Passu	54
SECTION 6.	BORROWER’S NEGATIVE COVENANTS	54
6.1	Liens	54
6.2	Priority Indebtedness	56
6.3	Acquisitions	56
6.4	Restrictions on Subsidiary Distributions	57
6.5	Restricted Payments	57
6.6	Restriction on Fundamental Changes and Asset Sales	58
6.7	[Intentionally Omitted]	58
6.8	Transactions with Affiliates	58
6.9	Financial Covenants	58
SECTION 7.	EVENTS OF DEFAULT	58
7.1	Failure to Make Payments When Due	59
7.2	Default in Other Agreements	59
7.3	Breach of Certain Covenants	59
7.4	Breach of Warranty	59
7.5	Other Defaults Under Loan Documents	59
7.6	Involuntary Bankruptcy; Appointment of Receiver, etc.	59
7.7	Voluntary Bankruptcy; Appointment of Receiver, etc.	60
7.8	Judgments and Attachments	60
7.9	Dissolution	60
7.10	Employee Benefit Plans	60
7.11	Change in Control	60
7.12	Repudiation of Obligations	60
7.13	Insurance Licenses	61
SECTION 8.	MISCELLANEOUS	61
8.1	Assignments and Participations in Loans and Notes	61
8.2	Expenses	64
8.3	Indemnity	64
8.4	Set-Off	65
8.5	Amendments and Waivers	66
8.6	Independence of Covenants	66
8.7	Notices	66
8.8	Survival of Representations, Warranties and Agreements	68
8.9	Failure or Indulgence Not Waiver; Remedies Cumulative	68
8.10	Marshalling; Payments Set Aside	68
8.11	Severability	68
8.12	Headings	69
8.13	Applicable Law	69
8.14	Successors and Assigns	69
8.15	Consent to Jurisdiction and Service of Process	69
8.16	Waiver of Jury Trial	70
8.17	Confidentiality	70

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8.18	Ratable Sharing	71
8.19	Counterparts; Integration; Effectiveness; Electronic Execution	72
8.20	Obligations Several; Independent Nature of Lenders’ Rights	72
8.21	Usury Savings Clause	72
8.22	USA PATRIOT Act	73
8.23	No Advisory or Fiduciary Relationships	73
SECTION 9.	AGENTS	73
9.1	Appointment	73
9.2	Powers and Duties; General Immunity	74
9.3	Representations and Warranties; No Responsibility For Appraisal of Creditworthiness	75
9.4	Right to Indemnity	76
9.5	Successor Administrative Agent	76
9.6	Acknowledgment of Potential Related Transactions	76
9.7	Non-Receipt of Funds by the Administrative Agent	77
9.8	Withholding Tax	77

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SCHEDULES
1.1	PRICING SCHEDULE
1.2	LENDERS’ COMMITMENTS
1.3	EXISTING FRONTED LETTERS OF CREDIT
4.1C	SUBSIDIARIES
4.6	LITIGATION
6.1	EXISTING SECURED INDEBTEDNESS
6.4	APPLICABLE ORDERS AND AGREEMENTS
6.8	TRANSACTIONS WITH AFFILIATES
EXHIBITS
I	FORM OF NOTICE OF BORROWING
II	FORM OF CONVERSION/CONTINUATION NOTICE
III	FORM OF NOTE
IV	FORMS OF U.S. TAX CERTIFICATES
V	FORM OF ASSIGNMENT AGREEMENT
VI	FORM OF CONFIRMING LENDER AGREEMENT

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CREDIT AGREEMENT

CREDIT AGREEMENT dated as of September 16, 2014 is entered into among ASSURANT, INC., a Delaware corporation (the “Borrower”), the Lenders party hereto, JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as syndication agent (in such capacity, the “Syndication Agent”).

PRELIMINARY STATEMENTS

The Borrower has requested, and the Lenders have agreed to extend, the credit facility hereinafter described in the amount and on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Lenders, the Administrative Agent and the Syndication Agent agree as follows:

SECTION 1. DEFINITIONS

1.1 Certain Defined Terms.

The following terms used in this Agreement shall have the following meanings:

“Administrative Agent” is defined in the introduction to this Agreement.

“Administrative Questionnaire” means an administrative questionnaire, substantially in the form supplied by the Administrative Agent, completed by a Lender and furnished to the Administrative Agent in connection with this Agreement.

“Affected Lender” is defined in Section 2.6B.

“Affected Loans” is defined in Section 2.6B.

“Affiliate” means, as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, that Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power (i) to vote 10% or more of the Securities having ordinary voting power for the election of directors of such Person or (ii) to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise.

“Agent” means the Administrative Agent and the Syndication Agent, collectively, and also means and includes any successor Administrative Agent appointed pursuant to Section 9.5.

“Agent Party” has the meaning assigned to such term in Section 8.7D.

“Aggregate Credit Exposure” means the aggregate amount of the Credit Exposures of each of the Lenders.

“Agreement” means this Credit Agreement.

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

“Applicable Insurance Regulatory Authority” means, when used with respect to any Insurance Subsidiary, the insurance department or similar administrative authority or agency located in (i) the state or other jurisdiction in which such Insurance Subsidiary is domiciled or (ii) to the extent asserting regulatory jurisdiction over such Insurance Subsidiary, each state or other jurisdiction in which such Insurance Subsidiary is licensed or conducts business, and shall include any Federal insurance regulatory department, authority or agency that may be created and that asserts regulatory jurisdiction over such Insurance Subsidiary.

“Applicable Margin” means a percentage per annum determined by reference to Schedule 1.1.

“Applicable Reserve Requirement” means, at any time, for any LIBOR Loan, the maximum rate, expressed as a decimal, at which reserves (including any basic, marginal, special, supplemental, emergency or other reserves) are required to be maintained with respect thereto against “Eurocurrency liabilities” (as such term is defined in Regulation D) under regulations issued from time to time by the FRB or other applicable banking regulator. Without limiting the effect of the foregoing, the Applicable Reserve Requirement shall reflect any other reserves required to be maintained by such member banks with respect to (i) any category of liabilities which includes deposits by reference to which the applicable LIBOR or any other interest rate of a Loan is to be determined or (ii) any category of extensions of credit or other assets which include LIBOR Loans. A LIBOR Loan shall be deemed to constitute Eurocurrency liabilities and as such shall be deemed subject to reserve requirements without benefits of credit for proration, exceptions or offsets that may be available from time to time to the applicable Lender. The rate of interest on LIBOR Loans shall be adjusted automatically on and as of the effective date of any change in the Applicable Reserve Requirement.

“Approved Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (i) a Lender, (ii) an Affiliate of a Lender or (iii) an entity or an Affiliate of an entity that administers or manages a Lender.

“Arrangers” means J.P. Morgan Securities LLC and Wells Fargo Securities, LLC.

“Assignment Agreement” means an Assignment and Assumption Agreement substantially in the form of Exhibit V, with such amendments or modifications as may be approved by the Administrative Agent.

“ASU No. 2010-26” means Accounting Standards Update (ASU) No. 2010-26 (Topic 944): “Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts”, issued October 2010.

“Assuming Lender” is defined in Section 2.9.

“Availability Period” means the period from and including the Effective Date to but not including the Commitment Termination Date.

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”.

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“Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed for it, or, in the good faith determination of the Administrative Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment, provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a Governmental Authority or instrumentality thereof, provided, further, that such ownership interest does not result in or provide such Person with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Person (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.

“Base Rate” means, for any day, a rate per annum equal to the greatest of (i) the Prime Rate in effect on such day, (ii) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1% and (iii) LIBOR for a one month Interest Period (the “Relevant Adjusted LIBO Rate”) on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1.00%; provided that, for the avoidance of doubt, the Relevant Adjusted LIBO Rate for any day shall be based on the rate appearing on Reuters Screen LIBOR01 Page (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to Dollar deposits in the London interbank market) at approximately 11:00 a.m. London time on such day. Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the Relevant Adjusted LIBO Rate shall be effective on the effective day of such change in the Prime Rate, the Federal Funds Effective Rate or the Relevant Adjusted LIBO Rate, respectively.

“Base Rate Loan” means a Loan bearing interest at a rate determined by reference to the Base Rate.

“Borrower” is defined in the introduction to this Agreement.

“Borrowing” means a group of Loans of the same Type of Loan made, continued or converted on the same day and, in the case of LIBOR Loans, having the same Interest Period.

“Business Day” means (i) for all purposes other than as covered by clause (ii) below, any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of New York or is a day on which banking institutions located in such state are authorized or required by law or other governmental action to close and any day on which commercial banks and foreign exchange markets do not settle payments in Dollars, and (ii) with respect to all notices, determinations, fundings and payments in connection with LIBOR Loans, any day that is a Business Day described in clause (i) above and that is also a day on which banks are open for dealings in Dollar deposits in the London interbank market.

“Capital Lease”, as applied to any Person, means any lease of any property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is accounted for as a capital lease on the balance sheet of that Person.

“Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation), including partnership interests and membership interests, and any and all warrants, rights or options to purchase or other arrangements or rights to acquire any of the foregoing.

“Cash” means money, currency or a credit balance in any demand or deposit account.

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“Cash Equivalents” means, as at any date of determination, (i) marketable securities (a) issued or directly and unconditionally guaranteed as to interest and principal by the United States Government or (b) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case maturing within one year after such date; (ii) marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within one year after such date and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (iii) commercial paper maturing no more than one year from the date of creation thereof and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (iv) certificates of deposit or bankers’ acceptances maturing within one year after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States of America or any state thereof or the District of Columbia that (a) is at least “adequately capitalized” (as defined in the regulations of its primary Federal banking regulator) and (b) has Tier 1 capital (as defined in such regulations) of not less than $100,000,000; and (v) shares of any money market mutual fund that (a) has substantially all of its assets invested continuously in the types of investments referred to in clauses (i) and (ii) above, (b) has net assets of not less than $500,000,000, and (c) has the highest rating obtainable from either S&P or Moody’s.

“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. §9604).

“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline, requirement or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder, issued in connection therewith or in implementation thereof and (y) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, implemented or issued.

“Change of Control” means that (a) any Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) (i) shall have acquired beneficial ownership of 30% or more on a fully diluted basis of the voting and/or economic interest in the Capital Stock of the Borrower or (ii) shall have obtained the power (whether or not exercised) to elect a majority of the members of the board of directors (or similar governing body) of the Borrower; or (b) during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any Person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors).

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“Commitment” means, with respect to any Lender, the commitment of such Lender to make Loans to the Borrower pursuant to Section 2.1A, to issue Syndicated Letters of Credit for the account of the Borrower pursuant to Section 2.10 and/or to acquire participations in Fronted Letters of Credit pursuant to Section 2.11, and “Commitments” means such commitments of all Lenders in the aggregate. The amount of the Commitment of each Lender as of the Effective Date is set forth on Schedule 1.2.

“Commitment Fee Rate” means a percentage per annum determined by reference to Schedule 1.1.

“Commitment Increase” is defined in Section 2.9.

“Commitment Increase Date” is defined in Section 2.9.

“Commitment Termination Date” means the earlier to occur of (i) the Maturity Date and (ii) the date on which the Commitments terminate pursuant to Section 2.4B(i).

“Communications” has the meaning assigned to such term in Section 8.7D.

“Compliance Certificate” means a certificate of the chief financial officer, treasurer or controller of the Borrower (i) setting forth computations in reasonable detail satisfactory to the Administrative Agent demonstrating compliance with the covenants set forth in Section 6.2, Section 6.4(viii) (provided, in the case of Section 6.4(viii), computations demonstrating compliance with such Section shall be required (x) only to the extent that a Subsidiary has issued securities for which the Borrower is relying on the exception under Section 6.4(viii) to issue such securities and (y) only for the Fiscal Quarter in which such Subsidiary has issued such securities) and Section 6.9, as at the end of the period covered by the financial statements being delivered with such certificate, (ii) certifying as to no Potential Event of Default or Event of Default except as otherwise specified in such certificate and (iii) listing Subsidiaries of the Borrower that operate primarily in the healthcare industry (and any intermediate holding company parent, the majority of whose Subsidiaries operate primarily in the healthcare industry).

“Confirming Lender” means, with respect to any Lender, any other Person which is listed on the NAIC Approved Bank List that has agreed, by delivery of an agreement between such Lender and such other Person in substantially the form of Exhibit VI or any other form reasonably satisfactory to the Administrative Agent, to honor the obligations of such Lender in respect of a draft complying with the terms of a Syndicated Letter of Credit as if, and to the extent, such other Person were an “issuing bank” (in place of such Lender) named in such Syndicated Letter of Credit.

“Consolidated Adjusted Net Worth” means, as at any date of determination, the sum of (a) the amounts that would, in accordance with GAAP, be included on the consolidated balance sheet of the Borrower and its Subsidiaries as of such date as total stockholders’ equity (including all “preferred stock” (other than Disqualified Capital Stock and/or Hybrid Securities that are determined to be, or that are treated as, “preferred stock”)), but excluding (i) treasury stock, (ii) accumulated other comprehensive income (AOCI) and (iii) noncontrolling interests in subsidiaries (as determined in accordance with the Statement of Financial Accounting Standards No. 160, entitled “Noncontrolling Interests in Consolidated Financial Statements”), and (b) the amounts of all obligations of the Borrower and its Subsidiaries in respect of Disqualified Capital Stock and/or Hybrid Securities to the extent, as at such date of determination, such obligations would be excluded from the definition of “Indebtedness” by virtue of the proviso contained in clause (viii) of such definition. For purposes of determining Consolidated Adjusted Net Worth, any reduction in stockholders’ equity as of December 31, 2011 resulting from the retrospective adoption by the Borrower of ASU No. 2010-26 shall be disregarded.

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“Consolidated Capitalization” means, in respect of the Borrower and its Subsidiaries on a consolidated basis, as at any date of determination, the sum of Consolidated Total Debt and Consolidated Adjusted Net Worth.

“Consolidated Net Income” means, in respect of the Borrower and its Subsidiaries on a consolidated basis, for any period, (i) the net income (or loss) for the Borrower and its Subsidiaries for such period taken as a single accounting period determined in conformity with GAAP, minus (ii) (a) the income (or loss) of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with the Borrower or any of its Subsidiaries or that Person’s assets are acquired by the Borrower or any of its Subsidiaries, (b) any after-tax gains or losses attributable to returned surplus assets of any Pension Plan, and (c) (to the extent not included in clauses (a) and (b) above) any net extraordinary gains or net extraordinary losses.

“Consolidated Total Debt” means, in respect of the Borrower and its Subsidiaries on a consolidated basis, as at any date of determination, the aggregate stated balance sheet amount of all Indebtedness, determined on a consolidated basis in accordance with GAAP, but excluding (i) Indebtedness constituting letters of credit issued for insurance regulatory purposes (including, for the avoidance of doubt, for reserve credit and required solvency ratio purposes) and for which adequate insurance reserves or other appropriate provisions consistent with Borrower’s past practice have been made therefor and (ii) Non-Recourse Indebtedness.

“Contractual Obligation”, as applied to any Person, means any provision of any securities issued by that Person or of any indenture, mortgage, deed of trust, or other material contract, undertaking, agreement or other material instrument to which that Person is a party or by which it or any of its properties is bound or to which it or any of its properties is subject.

“Conversion/Continuation Date” means the effective date of a continuation or conversion, as the case may be, as set forth in the applicable Conversion/Continuation Notice.

“Conversion/Continuation Notice” means a Conversion/Continuation Notice substantially in the form of Exhibit II.

“Credit Exposure” means, with respect to any Lender at any time, the sum of (i) the aggregate principal amount of such Lender’s Loans and (ii) such Lender’s LC Exposure, in each case, outstanding at such time.

“Credit Extension” means any Borrowing or the issuance, amendment, renewal, or extension of any Letter of Credit hereunder.

“Defaulting Lender” means any Lender that (a) has failed, within three Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans or obligations in respect of Syndicated Letters of Credit or participations in Fronted Letters of Credit or (ii) pay over to the Administrative Agent, any Fronted LC Issuing Bank or any other Lender any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to funding (specifically identified and including the particular default, if any) has not been satisfied, (b) has notified the Borrower, the Administrative Agent, any Fronted LC Issuing Bank or any Lender in writing, or made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Lender’s good faith determination that a condition precedent (specifically identified and including the particular default, if any) to funding a Loan under this

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Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed, within three Business Days after request by the Administrative Agent or the Borrower, to confirm in writing that it will comply with its funding obligations under this Agreement (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon the Administrative Agent’s receipt of such certification) or (d) has become the subject of a Bankruptcy Event.

“Disqualified Capital Stock” means that portion of any Capital Stock (other than Capital Stock that is solely redeemable, or at the election of the Borrower (not subject to any condition), may be redeemed, with Capital Stock that is not Disqualified Capital Stock) which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable at the option of the holder thereof), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the sole option of the holder thereof, on or prior to 91 days after the scheduled Maturity Date.

“Dollars” and the sign “$” mean the lawful money of the United States of America.

“Effective Date” means the date on which all conditions precedent set forth in Section 3.1 have been satisfied.

“Electronic Signature” means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.

“Electronic System” means any electronic system, including e-mail, e-fax, Intralinks^®, ClearPar^® and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent and any Fronted LC Issuing Bank and any of its respective Related Parties or any other Person, providing for access to data protected by passcodes or other security system.

“Eligible Assignee” means any Person which is (i) a Lender or an Affiliate of a Lender; or (ii) a commercial bank, savings and loan association, savings bank, insurance company, investment or mutual fund or other entity that is an “accredited investor” (as defined in Regulation D under the Securities Act) and which extends credit or buys loans as one of its businesses; provided that (a) such Person is a NAIC Approved Bank and (b) no Ineligible Institution shall be an Eligible Assignee.

“Employee Benefit Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA which is or was maintained or contributed to by the Borrower or any of its Subsidiaries or, in the case of any such plan subject to Title IV of ERISA, by any ERISA Affiliate.

“Environmental Claim” means any investigation, notice, notice of violation, claim, action, suit, proceeding, demand, abatement order or other order or directive (conditional or otherwise), by any Governmental Authority or any other Person, arising (i) pursuant to or in connection with any actual or alleged violation of any Environmental Law, (ii) in connection with any Hazardous Materials or any actual or alleged Hazardous Materials Activity or (iii) in connection with any actual or alleged damage, injury, threat or harm to health, safety, natural resources or the environment.

“Environmental Laws” means any and all current or future federal, state, local and foreign laws and regulations, statutes, ordinances, orders, rules, guidance documents, judgments, Governmental Authorizations, or any other requirements of Governmental Authorities relating to (i) environmental matters, including those relating to any Hazardous Materials Activity, (ii) the generation, use, storage, transportation or disposal of Hazardous Materials, or (iii) occupational safety and health, industrial hygiene, land use or the protection of human health or the environment, in any manner applicable to the Borrower or any of its Subsidiaries or any Facilities.

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“ERISA” means the Employee Retirement Income Security Act of 1974.

“ERISA Affiliate” means (i) any corporation which is a member of a controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code of which the Borrower or any Subsidiary is a member; (ii) any trade or business (whether or not incorporated) which is a member of a group of trades or businesses under common control within the meaning of Section 414(c) of the Internal Revenue Code of which the Borrower or any Subsidiary is a member; and (iii) any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code of which the Borrower, any Subsidiary, any corporation described in clause (i) above or any trade or business described in clause (ii) above is a member.

“ERISA Event” means (i) a “reportable event” within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to any Pension Plan (excluding those for which the provision for 30-day notice to the PBGC has been waived by regulation); (ii) the failure to meet the minimum funding requirements of Section 412 of the Internal Revenue Code with respect to any Pension Plan (whether or not waived in accordance with Section 412(c) of the Internal Revenue Code) or the failure to make by its due date a required installment under Section 430 of the Internal Revenue Code with respect to any Pension Plan; (iii) the provision by the administrator of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA or the commencement of proceedings by the PBGC to terminate a pension plan or the appointment of a trustee to administer a pension plan; (iv) the withdrawal by the Borrower, any Subsidiary or any ERISA Affiliate from any Pension Plan with two or more contributing sponsors or the termination of any such Pension Plan, in each case, resulting in liability pursuant to Section 4063 or 4064 of ERISA; (v) the occurrence of an event or condition that could reasonably be expected to give rise to the imposition of liability on the Borrower, any Subsidiary or any ERISA Affiliate pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA; (vi) the filing of a material claim (other than routine claims for benefits) against any Employee Benefit Plan other than a Multiemployer Plan or the assets thereof, or against the Borrower, any Subsidiary or any ERISA Affiliate in connection with any Employee Benefit Plan; or (vii) the imposition of, or the occurrence of an event or condition that could reasonably be expected to result in the imposition of, a Lien pursuant to ERISA with respect to any Pension Plan; (viii) the incurrence by Borrower or any of its ERISA Affiliates of any liability with respect to the complete or partial withdrawal from a Multiemployer Plan; or (ix) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan or determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA or, endangered or critical status, within the meaning of Section 432 of the Code or Section 305 of ERISA.

“Event of Default” means each of the events set forth in Section 7.

“Exchange Act” means the Securities Exchange Act of 1934.

“Existing Credit Agreement” means that certain Credit Agreement dated as of September 21, 2011 among the Borrower, the lenders party thereto, JPMCB, as administrative agent thereunder, and Bank of America, N.A., as syndication agent thereunder, as heretofore amended and in effect.

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“Existing Fronted Letters of Credit” means the letters of credit issued under the Existing Credit Agreement by Wells Fargo Bank, National Association for the account of the Borrower prior to the Effective Date that are outstanding as of the Effective Date and identified in Schedule 1.3.

“Facilities” means any and all real property (including all buildings, fixtures or other improvements located thereon) now, hereafter or heretofore owned, leased, operated or used by the Borrower or any of its Subsidiaries or any of their respective predecessors or Affiliates.

“FAS No. 159” means the Statement of Financial Accounting Standards No. 159, entitled “The Fair Value Option for Financial Assets and Financial Liabilities”.

“FATCA” means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code. For purposes of the preceding sentence, such amended or successor version of FATCA shall be deemed not to be materially more onerous for a Lender to comply with if the Borrower shall have offered to compensate such Lender for the costs of such compliance (including costs attributable to the Lender’s own personnel) to the reasonable satisfaction of such Lender.

“Federal Funds Effective Rate” means, for any day, an interest rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations at approximately 11:00 a.m. on such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent in its sole discretion.

“Fiscal Quarter” means a fiscal quarter of any Fiscal Year.

“Fiscal Year” means the fiscal year of the Borrower and its Subsidiaries ending on December 31 of each calendar year. For purposes of this Agreement, any particular Fiscal Year shall be designated by reference to the calendar year in which such Fiscal Year ends.

“Foreign Subsidiary” means any Subsidiary that is not organized under the laws of a jurisdiction located in the United States of America.

“FRB” means the Board of Governors of the Federal Reserve System.

“Fronted LC Issuing Bank” means any bank designated by the Borrower that is acceptable to the Administrative Agent in its reasonable discretion and that has agreed in writing to act as a Fronted LC Issuing Bank hereunder, in either case, in its capacity as an issuer of Fronted Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.10G.

“Fronted Letters of Credit” means the letters of credit issued by each Fronted LC Issuing Bank, in each case as the sole issuer thereof, under Section 2.10, and shall include the Existing Fronted Letters of Credit.

“Funding and Payment Office” means the office of the Administrative Agent as set forth under the Administrative Agent’s name on the signature pages hereof, or such other office designated in a written notice delivered by the Administrative Agent to the Borrower and each Lender.

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“GAAP” means, subject to the limitations on the application thereof set forth in Section 1.2, generally accepted accounting principles set forth in opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession, in each case as the same are applicable to the circumstances as of the date of determination.

“Governmental Authority” means any federal, state, municipal, national or other government, governmental department, commission, board, bureau, court, agency or instrumentality or political subdivision thereof or any entity or officer exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any government or any court, in each case whether associated with a state of the United States, the United States, or a foreign entity or government, and shall include any Applicable Insurance Regulatory Authority.

“Governmental Authorization” means any permit, license, authorization, plan, directive, consent order or consent decree of or from any Governmental Authority.

“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (ii) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness of the payment thereof or (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or (iv) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness; provided that the term Guarantee shall not include (x) endorsements for collection or deposit in the ordinary course of business and (y) customary indemnity obligations provided in connection with any acquisition or disposition of assets permitted hereunder.

“Hazardous Materials” means any chemical, material or substance, exposure to which is prohibited, limited or regulated by any Environmental Law or which poses a hazard to the health and safety of the owners, occupants or any Persons in the vicinity of any Facility or to the indoor or outdoor environment.

“Hazardous Materials Activity” means any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

“Hybrid Securities” means (i) any preferred Securities which have the following characteristics: (a) a wholly-owned Subsidiary which is a Delaware business trust (or similar entity) lends substantially all of the proceeds from the issuance of such preferred Securities to the Borrower or another wholly-owned Subsidiary in exchange for junior subordinated debt Securities issued by the Borrower or such other wholly-owned Subsidiary (as the case may be), (b) such preferred Securities contain terms providing for the deferral of interest payments corresponding to provisions providing for the deferral of interest payments on such junior subordinated debt Securities and (c) the Borrower or such wholly-owned Subsidiary (as the case may be) makes periodic interest payments on such junior subordinated debt

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Securities, which interest payments are in turn used to make corresponding payments to the holders of the preferred Securities; and (ii) any debt Securities issued by the Borrower that are mandatorily convertible into common equity, so long as such debt Securities are afforded equity capital treatment by S&P (and the Borrower shall have provided satisfactory evidence of such treatment to the Administrative Agent).

“Impacted Interest Period” has the meaning assigned to such term in the definition of “LIBOR”.

“Increasing Lender” is defined in Section 2.9.

“Indebtedness”, as applied to any Person (and without duplication), means (i) all indebtedness for borrowed money, (ii) that portion of obligations with respect to Capital Leases that is properly classified as a liability on a balance sheet in conformity with GAAP, (iii) notes payable and drafts accepted representing extensions of credit whether or not representing obligations for borrowed money, (iv) any obligation owed for all or any part of the deferred purchase price of property or services (excluding (1) any such obligations incurred under ERISA, (2) any current accounts payable incurred in the ordinary course of business and (3) any earn–out or similar obligation (but only to the extent such obligation, or portion thereof, is contingent)), which purchase price is (a) due more than six months from the date of incurrence of the obligation in respect thereof or (b) evidenced by a note or similar written instrument, (v) all indebtedness secured by any Lien on any property or asset owned or held by that Person regardless of whether the indebtedness secured thereby shall have been assumed by that Person or is nonrecourse to the credit of that Person; provided that, for purposes of this clause (v), the amount of Indebtedness shall be equal to the lesser of (a) the fair market value of such property or asset and (b) the amount of Indebtedness secured by such Lien, (vi) the face amount of any letter of credit issued for the account of that Person or as to which that Person is otherwise liable for reimbursement of drawings, (vii) all Guarantees by such Person with respect to Indebtedness of another Person, (viii) the net termination obligation (after giving effect to any netting arrangements) of such Person in respect of any Swap Agreement determined as if such Swap Agreement were terminated as of the date of determination, and (ix) all obligations of such Person in respect of any Hybrid Securities and Disqualified Capital Stock, provided that, in the case of this clause (ix), only the amount of those obligations that exceed 15% of Consolidated Capitalization at the time of determination shall be included as Indebtedness. Notwithstanding the foregoing, and for the avoidance of doubt, “Indebtedness” shall not include (a) any liability for collateral held by the Borrower and/or its Subsidiaries relating to securities lending transactions, (b) any commitment or other undertaking of such Person to provide funds for the purchase or acquisition of any investment, including, without limitation, commitments in the nature of capital calls or capital contributions for private equity funds or similar investments and (c) obligations of the Borrower or any of its Subsidiaries arising under any Swap Agreements entered into in the ordinary course of business and not for speculative purposes (it being acknowledged and agreed that, for the avoidance of doubt, Swap Agreements entered into by the Borrower or its Subsidiaries for the purpose of mitigating risk with respect to all or any portion of the investment portfolio of the Borrower or its Subsidiaries shall be deemed to be in the ordinary course of business and not for speculative purposes).

“Indebtedness to Capitalization Ratio” means, in respect of the Borrower and its Subsidiaries on a consolidated basis, the ratio of (i) Consolidated Total Debt as of the last day of any Fiscal Quarter to (ii) Consolidated Capitalization as of such date.

“Indemnitee” is defined in Section 8.3.

“Indemnified Liabilities” is defined in Section 8.3.

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“Ineligible Institution” means (a) a natural person, (b) a Defaulting Lender, (c) the Borrower, any of its Subsidiaries or any of its Affiliates, or (d) a company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof.

“Insurance Business” means one or more aspects of the business of selling, issuing or underwriting insurance or reinsurance.

“Insurance Contract” means any insurance binder, contract or policy issued by an Insurance Subsidiary but shall not include any Reinsurance Agreement or Retrocession Agreement.

“Insurance Licenses” means, with respect to each Insurance Subsidiary, licenses (including licenses or certificates of authority from Applicable Insurance Regulatory Authorities), permits or authorizations to transact Insurance Business held, or required to be held, by such Insurance Subsidiary.

“Insurance Subsidiary” means any Subsidiary that is licensed to conduct, or conducts or is engaged in, an Insurance Business.

“Interest Payment Date” means with respect to: (i) any Base Rate Loan, the last day of each Fiscal Quarter and the Maturity Date; and (ii) any LIBOR Loan, (a) the last day of each Interest Period applicable to such Loan, (b) if any such Interest Period is longer than three months, each day during such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period, and (c) the Maturity Date.

“Interest Period” is defined in Section 2.2B.

“Interest Rate Determination Date” means, with respect to any Interest Period, the second Business Day prior to the first day of such Interest Period.

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended.

“Interpolated Rate” means, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBOR Screen Rate for the longest period (for which the LIBOR Screen Rate is available) that is shorter than the Impacted Interest Period and (b) the LIBOR Screen Rate for the shortest period (for which the LIBOR Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time.

“Joint Venture” means a joint venture, partnership or other similar arrangement, whether in corporate, partnership or other legal form; provided that in no event shall any Subsidiary of any Person be considered to be a Joint Venture to which such Person is a party.

“JPMCB” means JPMorgan Chase Bank, N.A. and its successors.

“LC Disbursement” means (i) with respect to any Fronted Letter of Credit, a payment made by the Fronted LC Issuing Bank thereof pursuant thereto and (ii) with respect to any Syndicated Letter of Credit, a payment made by a Lender pursuant thereto.

“LC Exposure” means, at any time, the sum of (i) the aggregate undrawn amount of all outstanding Letters of Credit at such time and (ii) the aggregate amount of all LC Disbursements under Letters of Credit that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender at any time shall be its Pro Rata Share of the aggregate LC Exposure at such time.

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“LC Issuing Bank” means (i) with respect to any Fronted Letter of Credit, the Fronted LC Issuing Bank of such Fronted Letter of Credit and (ii) with respect to any Syndicated Letter of Credit, each Lender, in its capacity as one of the issuers under such Syndicated Letter of Credit.

“Lender” and “Lenders” means the Persons listed on Schedule 1.2 and any other Person that shall become a party hereto pursuant to an Assignment Agreement or under an agreement entered into pursuant to Section 2.9, other than any Person that ceases to be a party hereto pursuant to an Assignment Agreement.

“Letter of Credit Documents” means, with respect to any Letter of Credit, collectively, any application therefor and any other agreements, instruments, guarantees or other documents (whether general in application or applicable only to such Letter of Credit) governing or providing for the rights and obligations of the parties concerned or at risk with respect to such Letter of Credit.

“Letter of Credit Sublimit” means $50,000,000.

“Letters of Credit” means each of the Syndicated Letters of Credit and the Fronted Letters of Credit.

“LIBOR” means, with respect to a LIBOR Loan for the relevant Interest Period, the result of (i) the London interbank offered rate administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for Dollars for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen or, in the event such rate does not appear on either of such Reuters pages, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate as shall be selected by the Administrative Agent from time to time in its reasonable discretion (in each case the “LIBOR Screen Rate”) at approximately 11:00 a.m., London time, on the Interest Rate Determination Date; provided that, if the LIBOR Screen Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement; provided, further, that if a LIBOR Screen Rate shall not be available at such time for such Interest Period (the “Impacted Interest Period”), then the LIBOR for such Interest Period shall be the Interpolated Rate; provided, that, if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement), divided by (ii) a percentage equal to (x) one minus (y) the Applicable Reserve Requirement. It is understood and agreed that all of the terms and conditions of this definition of “LIBOR” shall be subject to Section 2.6.

“LIBOR Loan” means any Loan bearing interest at a rate calculated on the basis of LIBOR.

“LIBOR Screen Rate” has the meaning assigned to such term in the definition of “LIBOR”.

“Lien” means any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any conditional sale or other title retention agreement, any lease in the nature thereof, and any agreement to give any security interest) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing.

“Loan Documents” means this Agreement, the Letter of Credit Documents and the Notes.

“Loans” means loans made by the Lenders to the Borrower pursuant to Section 2.1.

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“Margin Stock” is defined in Regulation U of the FRB as in effect from time to time.

“Material Adverse Effect” means a material adverse effect upon (i) the business, operations, properties or financial condition of the Borrower and its Subsidiaries, taken as a whole, (ii) the ability of the Borrower to perform any of its payment obligations or other material obligations under the Loan Documents or (iii) the legality, validity, binding effect or enforceability against the Borrower of any Loan Document to which it is a party.

“Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $100,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if such Swap Agreement were terminated at such time.

“Material Insurance Subsidiary” means, at any time, any Insurance Subsidiary having Statutory Surplus of $10,000,000 or more at such time.

“Material Subsidiary” means, at any time, a Subsidiary that as of the end of the most recently completed Fiscal Year accounted for (i) 5% or more of the total assets of the Borrower and its Subsidiaries or (ii) 5% or more of the total revenues of the Borrower and its Subsidiaries, in each case as determined by reference to the most recent audited consolidated financial statements for the Borrower and its Subsidiaries as of the end of such Fiscal Year.

“Maturity Date” means the earlier to occur of (i) September 16, 2019 and (ii) the date that all Obligations become due and payable (by acceleration or otherwise).

“Moody’s” means Moody’s Investor Services, Inc.

“Multiemployer Plan” means any Employee Benefit Plan which is a “multiemployer plan” as defined in Section 3(37) of ERISA.

“NAIC” means the National Association of Insurance Commissioners and any successor thereto.

“NAIC Approved Bank” means (i) any Person that is a financial institution listed on the most current “Bank List” approved by the NAIC (the “NAIC Approved Bank List”) or (ii) any Lender as to which its Confirming Lender is a financial institution listed on the NAIC Approved Bank List.

“NAIC Approved Bank List” is defined in the definition of “NAIC Approved Bank” in this Section 1.1.

“Non-Excluded Tax” is defined in Section 2.5B(i).

“Non-Recourse Indebtedness” means Indebtedness of a Subsidiary in connection with the consolidation of such Subsidiary as a “Variable Interest Entity” under Financial Accounting Standards Boards Interpretation No. 46R (or any successor interpretations or amendments thereto and as affected by any subsequent relevant pronouncements of the FASB or, if, and to the extent applicable, the SEC), provided that (i) the satisfaction of such Indebtedness is limited to the real property of such Subsidiary (except for customary exceptions for fraud, misapplication of funds and environmental indemnities) and (ii) the amount of all such Indebtedness that is deemed to constitute Non-Recourse Indebtedness shall be limited to the extent necessary to ensure that the aggregate outstanding amount of Non-Recourse Indebtedness of all such Subsidiaries does not at any time exceed 15% of Consolidated Adjusted Net Worth.

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“Non-US Lender” is defined in Section 2.5B(iii)(a).

“Note” means any promissory note of the Borrower issued pursuant to Section 2.1D or Section 8.1D, in each case substantially in the form of Exhibit III.

“Notice of Borrowing” means a notice substantially in the form of Exhibit I delivered by the Borrower to the Administrative Agent pursuant to Section 2.1B with respect to a proposed Borrowing of the Loans.

“Obligations” means all obligations of every nature of the Borrower from time to time owed to the Agents, the Lenders or any of them under any of the Loan Documents.

“OFAC” means the Office of Foreign Assets Control of the U.S. Department of Treasury.

“Officer’s Certificate” means (a) as applied to any corporation, a certificate executed on behalf of such corporation by its chairman of the board (if an officer) or its president or one of its vice presidents and by its chief financial officer, its treasurer, its assistant treasurer, its secretary or its assistant secretary or (b) as applied to any limited partnership, a certificate executed on behalf of such limited partnership by the chairman of the board (if an officer) or the president or one of the vice presidents and by the chief financial officer or treasurer of the general partner of such limited partnership, or, if the general partner of such limited partnership is an individual, executed by such individual; provided that each Officer’s Certificate with respect to the compliance with a condition precedent to the making of any Loans hereunder shall include: (i) a statement that the officer or officers making or giving such Officer’s Certificate have read such condition and any definitions or other provisions contained in this Agreement relating thereto, (ii) a statement that, in the opinion of the signers, they have made or have caused to be made such examination or investigation as is necessary to enable them to express an informed opinion as to whether or not such condition has been complied with and (iii) a statement as to whether, in the opinion of the signers, such condition has been complied with.

“Organizational Documents” means (i) with respect to any corporation, its certificate or articles of incorporation or organization and its by-laws, (ii) with respect to any limited partnership, its certificate of limited partnership and its partnership agreement, (iii) with respect to any general partnership, its partnership agreement and (iv) with respect to any limited liability company, its articles of organization and its operating agreement. In the event any term or condition of this Agreement or any other Loan Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such “Organizational Document” shall only be to a document of a type customarily certified by such governmental official.

“Other Taxes” means any present or future stamp, court, documentary, intangible, recording, filing or similar excise or property Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, or from the registration, receipt, perfection of a security under, or otherwise with respect to, this Agreement, except any such Taxes imposed with respect to an assignment hereunder (other than an assignment made pursuant to Section 2.7).

“Participant Register” is defined in Section 8.1G.

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“Patriot Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).

“PBGC” means the Pension Benefit Guaranty Corporation and any successor thereto.

“Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA.

“Person” means and includes natural persons, corporations, limited partnerships, general partnerships, limited liability companies, limited liability partnerships, joint stock companies, Joint Ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other organizations, whether or not legal entities, and Governmental Authorities.

“Potential Event of Default” means a condition or event that, after notice or lapse of time or both as specified in Section 7, would constitute an Event of Default.

“Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMCB as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.

“Priority Indebtedness” means (i) all outstanding Indebtedness of the Borrower or any of its Subsidiaries secured by Liens permitted under Section 6.1(xx) and (ii) all outstanding unsecured Indebtedness of all Subsidiaries of the Borrower, other than (a) Indebtedness of any Subsidiary of the Borrower owing to the Borrower or Indebtedness (including Guarantees) of any Subsidiary of the Borrower owing to another Subsidiary of the Borrower, (b) Indebtedness of any Subsidiary of the Borrower outstanding at the time such Subsidiary is acquired by the Borrower or any other Subsidiary of the Borrower, including amendments, extensions and refinancings thereof (provided that such Indebtedness shall have not been created in contemplation of or in connection with such Person becoming a Subsidiary, the amount thereof is not thereafter increased and the obligor of such Indebtedness is not thereafter changed), (c) Indebtedness of any Subsidiary of the Borrower that is a special purpose finance entity that does not own any assets (other than those assets consistent with its limited purpose status) and that does not loan the proceeds of such Indebtedness to another Subsidiary, (d) Indebtedness of any Subsidiary of the Borrower constituting letters of credit issued for insurance regulatory purposes (including, for the avoidance of doubt, for reserve credit and required solvency ratio purposes) and for which adequate insurance reserves or other appropriate provisions consistent with such Subsidiary’s past practice has been made therefor and (e) Non-Recourse Indebtedness of any Subsidiary of the Borrower.

“Pro Rata Share” means, with respect to any Lender, the percentage of the aggregate Commitments represented by such Lender’s Commitment; provided that in the case of Section 2.12 when a Defaulting Lender shall exist, “Pro Rata Share” shall mean the percentage of the aggregate amount of the Commitments (disregarding any Defaulting Lender’s Commitment) represented by such Lender’s Commitment. If the Commitments have terminated or expired, the Pro Rata Shares shall be determined based upon the Commitments most recently in effect, giving effect to any assignments and to any Lender’s status as a Defaulting Lender at the time of determination.

“Register” is defined in Section 2.1E.

“Regulation D” means Regulation D of the FRB.

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“Reinsurance Agreement” means any agreement, contract, treaty or other arrangement whereby one or more insurers, as reinsurers, assume liabilities under insurance policies or agreements issued by another insurance or reinsurance company or companies.

“Release” means any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, surface water or groundwater.

“Replacement Lender” is defined in Section 2.7.

“Requisite Lenders” means the Lenders having Pro Rata Shares of more than 50%.

“Restricted Payment” means (i) any dividend or other distribution, direct or indirect, on account of any shares of any class of Capital Stock of the Borrower or any of its Subsidiaries now or hereafter outstanding, except a dividend payable solely in shares of that class of Capital Stock to the holders of that class; (ii) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of Capital Stock of the Borrower or any of its Subsidiaries now or hereafter outstanding; and (iii) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of Capital Stock of the Borrower or any of its Subsidiaries now or hereafter outstanding.

“Retrocession Agreement” means any agreement, contract, treaty or other arrangement whereby one or more insurers or reinsurers, as retrocessionaries, assume liabilities of reinsurers under a Reinsurance Agreement or other retrocessionaries under another Retrocession Agreement.

“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.

“Sanctioned Country” means, at any time, a country or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Cuba, Iran, North Korea, Sudan and Syria).

“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any EU member state, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons.

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom.

“SAP” means, with respect to any Insurance Subsidiary, the accounting procedures and practices prescribed or permitted by the Applicable Insurance Regulatory Authority, applied in accordance with Section 1.2.

“SEC” means Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

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“Securities” means any stock, share, partnership interest, membership interest in a limited liability company, voting trust certificate, certificate of interest or participation in any profit-sharing agreement or arrangement, option, warrant, bond, debenture, note, or other evidence of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.

“Securities Act” means the Securities Act of 1933.

“Solvent” means, with respect to any Person, that as of the date of determination both (A) (i) the then fair saleable value of the property of such Person is (y) greater than the total amount of liabilities (including contingent liabilities) of such Person and (z) not less than the amount that will be required to pay the probable liabilities on such Person’s then existing debts as they become absolute and matured considering all financing alternatives and potential asset sales reasonably available to such Person; (ii) such Person’s capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction; and (iii) such Person has not incurred and does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise); and (B) such Person is “solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

“Statutory Statement” means, as to any Insurance Subsidiary, a statement of the condition and affairs of such Insurance Subsidiary, prepared in accordance with SAP, and filed with the Applicable Insurance Regulatory Authority.

“Statutory Surplus” means, for any Insurance Subsidiary and its Subsidiaries, the “Total Adjusted Capital” (as defined by the NAIC) of such Insurance Subsidiary or Insurance Subsidiaries (as the case may be).

“Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; provided that, notwithstanding the foregoing, no real estate Joint Venture of the Borrower or its Subsidiaries shall be considered a Subsidiary unless such Joint Venture is consolidated on the balance sheet of the Borrower. Unless otherwise expressly provided, all references herein to a “Subsidiary” shall mean a Subsidiary of the Borrower.

“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement.

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“Syndicated Letters of Credit” means letters of credit issued under Section 2.10C.

“Syndication Agent” is defined in the introduction to this Agreement.

“Tax” means any present or future tax, levy, impost, duty, assessment, charge, deduction or withholding imposed, levied, collected, withheld or assessed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

“Terminated Lender” is defined in Section 2.7.

“Type of Loan” means a Base Rate Loan or a LIBOR Loan.

“U.S. Tax Certificate” means a certificate substantially in the form of Exhibit IV delivered by a Lender to the Administrative Agent pursuant to Section 2.5B(iii)(b).

“Warranty Business” means the business of underwriting, administering and/or providing extended service contracts and warranties for coverage against certain covered losses on various products, including consumer appliances, consumer electronics, personal computers, cellular phones, automobile and recreational vehicles and such other products (whether consumer or commercial) that may become subject to extended service contracts or warranties.

1.2 Accounting Terms; Utilization of GAAP for Purposes of Calculations Under Agreement.

Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP or SAP, as applicable, as in effect from time to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or SAP, as applicable, or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Requisite Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or SAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP or SAP, as applicable, as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith; provided further that any change in GAAP after the Effective Date will not cause any lease that was not or would not have been a Capital Lease prior to such change to be deemed a Capital Lease and the obligations with respect thereto shall not constitute Indebtedness under clause (ii) of the definition thereof. Financial statements and other information required to be delivered by the Borrower to the Administrative Agent pursuant to clauses (i) and (ii) of Section 5.1 shall be prepared in accordance with GAAP as in effect at the time of such preparation. Notwithstanding anything herein to the contrary, all financial statements delivered hereunder shall be prepared, all terms of an accounting or financial nature used herein shall be construed, and all financial covenants and computations of amounts and ratios contained herein shall be calculated, (a) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any Subsidiary at “fair value”, as defined therein and (b) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof.

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1.3 Other Definitional Provisions and Rules of Construction.

A. Any term defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference.

B. References to “Sections” and subsections shall be to Sections and subsections, respectively, of this Agreement unless otherwise specifically provided.

C. The use in any of the Loan Documents of the word “include” or “including”, when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not nonlimiting language (such as “without limitation” or “but not limited to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter.

D. Unless otherwise specified, all references herein to times of day shall be references to New York City time (daylight or standard, as applicable).

E. Unless otherwise expressly provided herein, (a) references to agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document; and (b) references to any statute, regulation or other law shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such statute, regulation or other law.

SECTION 2. AMOUNT AND TERMS OF COMMITMENTS AND LOANS

2.1 Commitment; Making of Loan; Notes.

A. Commitments. Subject to the terms and conditions of this Agreement, each Lender severally and not jointly agrees to make loans to the Borrower from time to time during the Availability Period in an aggregate principal amount that will not result in (i) such Lender’s Credit Exposure exceeding such Lender’s Commitment or (ii) the Aggregate Credit Exposure exceeding the aggregate amount of the Commitments. Amounts borrowed under this Section 2.1A may be repaid and, subject to the terms and conditions hereof, reborrowed from time to time.

B. Borrowing Mechanics; Minimum Amount. The Borrower shall notify the Administrative Agent of each proposed new Borrowing by delivering a Notice of Borrowing no later than 11:00 a.m. (a) at least three Business Days in advance of a proposed Borrowing of LIBOR Loans or (b) on the day of a proposed Borrowing of Base Rate Loans. Promptly upon receipt by the Administrative Agent of such Notice of Borrowing, the Administrative Agent shall notify each Lender of the proposed Borrowing and such Lender’s Pro Rata Share of such Borrowing. Each Borrowing shall be in a principal amount of $5,000,000 or a higher integral multiple of $1,000,000. Each Lender at its option may make any Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

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C. Disbursement of Funds. Each Lender shall make its Loan available to the Administrative Agent not later than 2:00 p.m. on the date of each proposed Borrowing, by wire transfer of same day funds in Dollars, at the Funding and Payment Office. Upon satisfaction or waiver of the conditions precedent specified in Section 3, the Administrative Agent shall make the proceeds of the Loans available to the Borrower on the date of such proposed Borrowing by causing an amount of same day funds in Dollars equal to the proceeds of all such Loans received by the Administrative Agent from the Lenders to be credited to the account of the Borrower at the Funding and Payment Office or to such other account as may be designated in writing to the Administrative Agent by the Borrower.

D. Notes. Upon request by any Lender, the Borrower shall promptly execute and deliver to the Administrative Agent for such Lender a Note to evidence such Lender’s Loans, in the principal amount of that Lender’s Commitment and with other appropriate insertions. The Administrative Agent may deem and treat the payee of any Note as the owner thereof for all purposes hereof unless and until an Assignment Agreement effecting the assignment or transfer thereof shall have been accepted by the Administrative Agent as provided in Section 8.1C. Any request, authority or consent of any Person that, at the time of making such request or giving such authority or consent, is the holder of any Note shall be conclusive and binding on any subsequent holder, assignee or transferee of that Note or of any Note issued in exchange therefor.

E. The Register.

(i) The Administrative Agent shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain at the Funding and Payment Office a register for the recordation of the names and addresses of the Lenders and the principal amount and stated interest of the Loans and the Commitment of each Lender from time to time (the “Register”). The Register shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice.

(ii) The Administrative Agent shall record in the Register the Commitment and the Loans of each Lender, and each repayment or prepayment of the principal amount of such Loans. Any such recordation shall be conclusive and binding on the Borrower and each Lender, absent manifest error; provided that failure to make any such recordation, or any error in such recordation, shall not affect any Lender’s Commitment or the Obligations in respect of any applicable Loan.

(iii) Each Lender shall record on its internal records (or, at such Lender’s option, on the Note held by such Lender) the amount of each Loan made by it and each payment thereof. Any such recordation shall be conclusive and binding on the Borrower, absent manifest error; provided that failure to make any such recordation, or any error in such recordation, shall not affect any Lender’s Commitment or the Obligations in respect of any applicable Loan; and provided, further, that in the event of any inconsistency between the Register and any Lender’s records, the recordations in the Register shall govern (absent manifest error therein).

(iv) The Borrower, the Administrative Agent and the Lenders shall deem and treat the Persons listed as Lenders in the Register as the holders and owners of the corresponding Commitments and Loans listed therein for all purposes hereof, and no assignment or transfer of any such Commitment or Loan shall be effective, in each case unless and until an Assignment Agreement effecting the assignment or transfer thereof shall have been accepted by the Administrative Agent and recorded in the Register as provided in Section 8.1C. Prior to such recordation, all amounts owed with respect to the applicable Commitment or Loan shall be owed to the Lender listed in the Register as the owner thereof, and any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is listed in the Register as a Lender shall be conclusive and binding on any subsequent holder, assignee or transferee of the corresponding Commitments or Loans.

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2.2 Interest on the Loans.

A. Rate of Interest; Type of Loan.

(i) Subject to the provisions of Sections 2.2E, 2.5 and 2.6, each Loan shall bear interest on the unpaid principal amount thereof from the date made to the date of repayment thereof at a rate equal to (a) at any time such Loan is a Base Rate Loan, the Base Rate plus the Applicable Margin; and (b) at any time such Loan is a LIBOR Loan, the LIBOR plus the Applicable Margin.

(ii) The basis for determining the rate of interest on any Loan, and the Interest Period for any LIBOR Loan, shall be selected by the Borrower and notified to the Administrative Agent pursuant to the applicable Notice of Borrowing or Conversion/Continuation Notice, as the case may be. If on any day a Loan is outstanding with respect to which a Notice of Borrowing or Conversion/Continuation Notice has not been delivered to the Administrative Agent in accordance with the terms hereof specifying the applicable basis for determining the rate of interest, then for that day such Loan shall be a Base Rate Loan.

(iii) If the Borrower fails to specify Base Rate Loans or LIBOR Loans in the applicable Notice of Borrowing or Conversion/Continuation Notice, the applicable Borrowing (if comprised of LIBOR Loans) will be automatically converted into a Borrowing of Base Rate Loans on the last day of the then-current Interest Period for such Borrowing (or if outstanding as a Borrowing of Base Rate Loans will remain as, or (if not then outstanding) will be made as, a Borrowing of Base Rate Loans). As soon as practicable after 11:00 a.m. on each Interest Rate Determination Date, the Administrative Agent shall determine (which determination shall, absent manifest error, be final, conclusive and binding upon all parties) the interest rate that shall apply to the LIBOR Loans for which an interest rate is then being determined for the applicable Interest Period and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to the Borrower and each Lender.

B. Interest Periods. An interest period (each an “Interest Period”) for a Borrowing of LIBOR Loans shall be a one, two, three or six month period, as selected by the Borrower in the applicable Notice of Borrowing or Conversion/Continuation Notice; provided that:

(i) each successive Interest Period for a Borrowing shall commence on the day on which the immediately preceding Interest Period expires;

(ii) if an Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day; provided that, if any Interest Period would otherwise expire on a day that is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the immediately preceding Business Day;

(iii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month;

(iv) no Interest Period shall extend beyond the scheduled Maturity Date;

(v) there shall be no more than five Interest Periods outstanding at any time; and

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(vi) in the event the Borrower fails to specify an Interest Period for any such Borrowing in the applicable Notice of Borrowing or Conversion/Continuation Notice, the Borrower shall be deemed to have selected an Interest Period of one month.

C. Interest Payments. The Borrower shall pay all accrued and unpaid interest on each LIBOR Loan on each Interest Payment Date therefor, upon any prepayment thereof (on the amount being prepaid) and at maturity (by acceleration or otherwise). Accrued and unpaid interest on Base Rate Loans shall be payable on each Interest Payment Date therefor and at maturity (by acceleration or otherwise).

D. Default Rate. Notwithstanding the foregoing, if any principal amount of the Loans, reimbursement obligations in respect of the Letters of Credit, interest payments or fees or other amounts payable hereunder are not paid when due, such overdue amount shall bear interest (including post-petition interest in any case or proceeding under the Bankruptcy Code or other applicable bankruptcy laws) payable upon demand at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2.00% in excess of the rate otherwise payable with respect to such Loan and (ii) in the case of any other amount, 2.00% in excess of the rate then applicable to Base Rate Loans. Without duplication of amounts charged under the immediately preceding sentence, upon and during the continuance of an Event of Default, at the election of the Requisite Lenders, all outstanding Loans shall bear interest (including post-petition interest in any case or proceeding under the Bankruptcy Code or other applicable bankruptcy laws) payable upon demand at a rate per annum equal to 2.00% in excess of the rate otherwise payable with respect to the applicable Loans (or, in the case of any other amounts then due and payable, at a rate per annum equal to 2.00% in excess of the rate then applicable to Base Rate Loans). Payment or acceptance of the increased rates of interest provided for in this Section 2.2D is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Agents or the Lenders.

E. Computation of Interest. Interest payable hereunder shall be computed (i) in the case of Base Rate Loans at times when the Base Rate is based on the Prime Rate, on the basis of a 365-day or 366-day year, as the case may be, and (ii) in the case of LIBOR Loans, and Base Rate Loans at times when the Base Rate is based on the Federal Funds Effective Rate or LIBOR, on the basis of a 360-day year, in each case for the actual number of days elapsed in the period during which it accrues. In computing interest on any Loan, the date of the making of such Loan or the first day of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted from a LIBOR Loan, the date of conversion of such LIBOR Loan to such Base Rate Loan, as the case may be, shall be included, and the date of payment of such Loan or the expiration date of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted to a LIBOR Loan, the date of conversion of such Base Rate Loan to such LIBOR Loan, as the case may be, shall be excluded; provided that if a Loan is repaid on the same day on which it is made, one day’s interest shall be paid on that Loan.

F. Conversion/Continuation.

(i) Subject to Section 2.6 and so long as no Potential Event of Default or Event of Default shall have occurred and then be continuing, the Borrower shall have the option:

(a) to convert at any time all or any part of any Borrowing, in an amount equal to $5,000,000 or a higher integral multiple of $1,000,000, from one Type of Loan to the other Type of Loan; provided that LIBOR Loans may only be converted on the expiration of the Interest Period applicable to such LIBOR Loans unless the Borrower shall pay all amounts due under Section 2.6 in connection with such conversion; or

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(b) upon the expiration of any Interest Period applicable to any Borrowing of LIBOR Loans, to continue all or any portion of such Borrowing in an amount equal to $5,000,000 or a higher integral multiple of $1,000,000 as LIBOR Loans for a new Interest Period.

(ii) The Borrower shall deliver a Conversion/Continuation Notice to the Administrative Agent no later than 11:00 a.m. at least one Business Day in advance of the proposed conversion date (in the case of a conversion to Base Rate Loans) and at least three Business Days in advance of the proposed conversion/continuation date (in the case of conversion to, or continuation of, LIBOR Loans). Except as otherwise provided herein, a Conversion/Continuation Notice for conversion to, or continuation of, LIBOR Loans (or telephonic notice in lieu thereof) shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to effect a conversion or continuation in accordance therewith.

2.3 Fees.

A. Commitment Fee. The Borrower agrees to pay to the Administrative Agent, for the account of each Lender for each day during the period from and including the Effective Date to but not including the earlier of the date such Commitment is terminated and the Maturity Date, a commitment fee on the unused amount of such Lender’s Commitment which shall accrue at the Commitment Fee Rate determined by reference to Schedule 1.1. Commitment fees accrued through and including the last day of each Fiscal Quarter shall be payable on the third Business Day following such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Commitments terminate. All commitment fees will be computed on the basis of a year of 360 days and will be payable for the actual number of days elapsed.

B. Letter of Credit Fees. (i) The Borrower agrees to pay to the Administrative Agent for account of each Lender (other than Defaulting Lenders) a letter of credit fee which shall accrue at a rate per annum equal to the Applicable Margin for LIBOR Loans on the average daily aggregate undrawn amount of all outstanding Letters of Credit during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure. Letter of Credit fees accrued through and including the last day of each Fiscal Quarter shall be payable on the third Business Day following such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on which the Commitments terminate shall be payable on demand.

(ii) The Borrower agrees to pay to the relevant Fronted LC Issuing Bank a fronting fee which shall accrue at a rate per annum as agreed in writing between the Borrower and such Fronted LC Issuing Bank on the average daily amount of the LC Exposure in respect of the Fronted Letters of Credit issued by such Fronted LC Issuing Bank (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any such LC Exposure in respect of Fronted Letters of Credit. Fronting fees accrued through and including the last day of each Fiscal Quarter shall be payable on the third Business Day following such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on which the Commitments terminate shall be payable on demand.

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(iii) The Borrower agrees to pay to the Administrative Agent, for its own account with respect to Syndicated Letters of Credit and for the account of the relevant Fronted LC Issuing Bank with respect to the Fronted Letters of Credit, within 10 Business Days after demand, the Administrative Agent’s or such Fronted LC Issuing Bank’s, as applicable, standard administrative fees with respect to the issuance, amendment, renewal or extension of any Syndicated Letter of Credit or Fronted Letters of Credit, respectively, or processing of drawings thereunder. All letter of credit fees and fronting fees will be computed on the basis of a year of 360 days and will be payable for the actual number of days elapsed.

C. Other Fees. The Borrower agrees to pay to the Arrangers and the Agents such fees in the amounts and at the times separately agreed to by the Borrower, the Arrangers and the Agents.

2.4 Repayments and Prepayments; General Provisions Regarding Payments.

A. Payments of Loans.

The Loans and all other outstanding Obligations shall be paid in full no later than the Maturity Date.

B. Commitment Reductions; Prepayments.

(i) Commitment Reductions. The Borrower may at any time and from time to time upon not less than three Business Day’s prior irrevocable written notice given to the Administrative Agent, terminate or permanently reduce the unused portion of the Commitments on any Business Day. Any such reduction shall be in the amount of $5,000,000 or a higher integral multiple of $1,000,000. Any such notice of termination or reduction of the Commitments having been given as aforesaid shall be irrevocable and effective upon receipt by the Administrative Agent.

(ii) Prepayments. The Borrower may from time to time pay, without penalty or premium, all outstanding Loans, or, in a minimum aggregate amount of $5,000,000 or a higher integral multiple of $1,000,000, any portion of the outstanding Loans upon (a) three Business Days’ prior notice to the Administrative Agent, in the case of a prepayment of LIBOR Loans, or (b) one Business Day’s prior notice to the Administrative Agent, in the case of a prepayment of Base Rate Loans. Any prepayment of a LIBOR Loan on a day other than the last day of an Interest Period therefor shall be subject to Section 2.6C.

C. General Provisions Regarding Payments.

(i) Manner and Time of Payment. All payments by the Borrower hereunder and under the Notes shall be made in Dollars in same day funds, without defense, setoff or counterclaim, free of any restriction or condition, and delivered to the Administrative Agent not later than 2:00 P.M. on the date due at the Funding and Payment Office for the account of the Administrative Agent; funds received by the Administrative Agent after that time on such due date shall be deemed to have been paid by the Borrower on the next succeeding Business Day.

(ii) Payments on Business Days. Whenever any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder; provided that if such next succeeding Business Day occurs in the next calendar month, such payment shall be due and payable on the immediately preceding Business Day.

(iii) Distribution to Lenders. The Administrative Agent shall promptly distribute to each Lender, at such address as such Lender shall indicate in writing, such Lender’s applicable Pro Rata Share of all payments and prepayments of principal and interest due hereunder, together with all other amounts due thereto, including all fees payable with respect thereto, to the extent received by the Administrative Agent.

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(iv) Interest on Costs and Expenses. If any Lender incurs any cost or expense that this Agreement entitles it to collect from the Borrower, such cost or expense shall be payable together with interest thereon at a rate per annum equal to the rate applicable to Base Rate Loans as then in effect, from the date such cost or expense is incurred until such payment date. Such Lender shall notify the Borrower, through the Administrative Agent, of the cost or expense to be paid plus the amount of interest thereon. This provision shall not apply to payments or prepayments of principal or to amounts to be applied against principal, interest or any cost or expense to be collected pursuant to Section 2.6C.

(v) Failure to Make Certain Payments. If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.11C or Section 9.4, then the Administrative Agent may, in its discretion and notwithstanding any contrary provision hereof, (i) apply any amounts thereafter received by the Administrative Agent for the account of such Lender and for the benefit of the Administrative Agent or any LC Issuing Bank to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid, and/or (ii) hold any such amounts in a segregated account as cash collateral for, and application to, any future funding obligations of such Lender under such Sections, in the case of each of (i) and (ii) above, in any order as determined by the Administrative Agent in its discretion.

2.5 Increased Costs; Taxes.

A. Compensation for Increased Costs and Taxes. Subject to the provisions of Section 2.5B (which shall be controlling with respect to the matters covered thereby), and without duplication of any amount paid under Section 2.5B), in the event that any Lender or any Fronted LC Issuing Bank shall determine (which determination shall, absent manifest error, be final and conclusive and binding upon all parties hereto) that any Change in Law:

(i) subjects such Lender (or its applicable lending office) or such Fronted LC Issuing Bank to any additional Tax (other than any Non-Excluded Tax covered by Section 2.5B, any Tax on the overall net income of such Lender or such Fronted LC Issuing Bank (including franchise taxes imposed in lieu thereof), a branch profits tax imposed, levied, collected, withheld or assessed by or within the United States of America or any political subdivision in or of the United States of America or any other jurisdiction from or to which a payment is made by or on behalf of the Borrower, any U.S. withholding Taxes described in Section 2.5(B)(iii), or any Taxes imposed pursuant to FATCA) with respect to this Agreement or any of the other Loan Documents or any of its obligations hereunder or thereunder or any payments to such Lender (or its applicable lending office) or such Fronted LC Issuing Bank of principal, interest, fees or any other amount payable hereunder;

(ii) imposes, modifies or holds applicable any reserve (including any marginal, emergency, supplemental, special or other reserve or assessment), special deposit, compulsory loan, FDIC insurance or other insurance charge, liquidity or similar requirement against assets held by, or deposits or other liabilities in or for the account of, or advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such Lender or such Fronted LC Issuing Bank (other than any such reserve or other requirement with respect to LIBOR Loans that is reflected in the definition of LIBOR); or

(iii) imposes any other condition, cost or expense (other than with respect to a Tax matter) on or affecting this Agreement or such Lender (or its applicable lending office) or such Fronted LC Issuing Bank, as the case may be, or its obligations hereunder or the London interbank market;

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and the result of any of the foregoing is to increase the cost to such Lender or such Fronted LC Issuing Bank, as the case may be, of agreeing to make, making or maintaining Loans hereunder or to reduce any amount received or receivable by such Lender (or its applicable lending office) or such Fronted LC Issuing Bank, as the case may be, with respect thereto; then, in any such case, the Borrower shall promptly pay to such Lender or such Fronted LC Issuing Bank, as the case may be, upon receipt of the statement referred to in the next sentence, subject to Section 2.4C(iv), such additional amount or amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Lender or such Fronted LC Issuing Bank, as the case may be, in its sole discretion shall determine) as may be necessary to compensate such Lender or such Fronted LC Issuing Bank, as the case may be, for any such increased cost or reduction in amounts received or receivable hereunder. Such Lender or such Fronted LC Issuing Bank, as the case may be, shall deliver to the Borrower (with a copy to the Administrative Agent) a written statement, setting forth in reasonable detail the basis for calculating the additional amounts owed to such Lender or such Fronted LC Issuing Bank, as the case may be, under this Section 2.5A, which statement shall be conclusive and binding upon all parties hereto absent manifest error.

B. Withholding of Taxes.

(i) Payments to Be Free and Clear. All sums payable by the Borrower under this Agreement and the other Loan Documents shall (except to the extent required by law) be paid free and clear of, and without any deduction or withholding on account of, any Tax imposed or increased as a result of a Change in Law after the date hereof (in the case of each Lender listed on the signature pages hereof on the Effective Date) or after the effective date of the Assignment Agreement pursuant to which such Lender became a Lender (in the case of each other Lender) other than (i) a Tax imposed on or measured by the net income of any Lender (including franchise taxes imposed in lieu thereof); (ii) a branch profits tax imposed, levied, collected, withheld or assessed by or within the United States of America or any political subdivision in or of the United States of America or any other jurisdiction from or to which a payment is made by or on behalf of the Borrower; (iii) U.S. federal withholding Taxes imposed on amounts payable to or for the account of a Lender or a Fronted LC Issuing Bank with respect to its applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (a) such Lender or Fronted LC Issuing Bank acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.7), or (b) such Lender or Fronted LC Issuing Bank changes its lending office, except in each case to the extent that pursuant to Section 2.5(B) amounts with respect to such Taxes were payable either to such Lender’s or Fronted LC Issuing Bank’s assignor immediately before such Lender or Fronted LC Issuing Bank became a party hereto or changed its lending office; or (iv) any Taxes imposed pursuant to FATCA (a “Non-Excluded Tax”).

(ii) Grossing-up of Payments. If the Borrower or any other Person is required by law to make any deduction or withholding on account of any Non-Excluded Tax from any sum paid or payable by the Borrower to the Administrative Agent or any Lender under any of the Loan Documents:

(a) the Borrower shall promptly notify the Administrative Agent of any such requirement or any change in any such requirement;

(b) the Borrower shall pay any such Tax before the date on which penalties attach thereto, such payment to be made (if the liability to pay is imposed on the Borrower) for its own account or (if that liability is imposed on the Administrative Agent or such Lender, as the case may be) on behalf of and in the name of the Administrative Agent or such Lender;

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(c) the sum payable by the Borrower in respect of which the relevant deduction, withholding or payment is required shall be increased to the extent necessary to ensure that, after the making of that deduction, withholding or payment, the Administrative Agent or such Lender, as the case may be, receives on the due date a net sum equal to what it would have received had no such deduction, withholding or payment been required or made;

(d) the Borrower shall indemnify each such Lender, within 30 days after demand by such Lender therefor, for the full amount of any Non-Excluded Tax paid or incurred by such Lender with respect to any payment by or obligation of the Borrower under the Loan Documents (including any Non-Excluded Tax imposed or asserted on or attributable to amounts payable under this Section 2.5) and any reasonable expenses arising therefrom or with respect thereto (such demand to be made on a certificate stating the amount of such Non-Excluded Tax, which shall be conclusive and binding upon all parties hereto absent manifest error), whether or not such Non-Excluded Tax was correctly or legally imposed or asserted by the relevant Governmental Authority; and

(e) within 30 days after paying any sum from which it is required by law to make any deduction or withholding, and within 30 days after the due date of payment of any Tax which it is required by clause (b) above to pay, the Borrower shall deliver to the Administrative Agent evidence reasonably satisfactory to the other affected parties of such deduction, withholding or payment and of the remittance thereof to the relevant taxing or other authority.

(iii) Evidence of Exemption from U.S. Withholding Tax.

(a) Each Lender shall deliver to the Administrative Agent for transmission to the Borrower, on or prior to the Effective Date (in the case of each Lender listed on the signature pages hereof on the Effective Date) or on or prior to the date of the Assignment Agreement pursuant to which it becomes a Lender (in the case of each other Lender), and at such other times as may be necessary in the determination of the Borrower or the Administrative Agent (each in the reasonable exercise of its discretion), two original copies of Internal Revenue Service Form W-9, W-8BEN, W-8BEN-E or W-8ECI (or any successor forms) or, in the case of a Lender that is not a United States Person (as such term is defined in Section 7701(a)(30) of the Internal Revenue Code) for U.S. federal income tax purposes (a “Non-US Lender”) claiming exemption from U.S. federal withholding tax under Section 871(h) or 881(c) of the Internal Revenue Code with respect to payments of “portfolio interest”, a U.S. Tax Certificate and two original copies of Form W-8BEN or W-8BEN-E, or any subsequent versions thereof or successors thereto, properly completed and duly executed by such Lender, and/or such other documentation required under the Internal Revenue Code and reasonably requested by the Borrower to establish that such Lender is exempt from or entitled to a reduced rate of withholding of United States federal income tax with respect to any payments to such Lender of principal, interest, fees or other amounts payable under any of the Loan Documents. If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this paragraph (a), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

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(b) Each Lender required to deliver any forms, certificates or other evidence with respect to United States federal income tax withholding matters pursuant to Section 2.5B(iii)(a) hereby agrees, from time to time after the initial delivery by such Lender of such forms, certificates or other evidence, whenever a lapse in time or change in circumstances renders such forms, certificates or other evidence obsolete or inaccurate in any material respect, that such Lender shall promptly (1) deliver to the Administrative Agent for transmission to the Borrower two new original copies of Internal Revenue Service Form W-9, W-8BEN, W-8BEN-E or W-8ECI, or the applicable U.S. Tax Certificate and two original copies of Internal Revenue Service Form W-8BEN or W-8BEN-E, as the case may be, properly completed and duly executed by such Lender, and/or such other documentation required under the Internal Revenue Code and reasonably requested by the Borrower to confirm or establish that such Lender is exempt from or entitled to a reduced rate of withholding of United States federal income tax with respect to payments to such Lender under the Loan Documents or (2) notify the Administrative Agent and the Borrower of its legal inability to deliver any such forms, certificates or other evidence.

(c) The Borrower shall not be required to pay any additional amount to any Lender under Section 2.5B if such Lender shall have failed to satisfy the requirements of clause (a) or (b)(1) of this Section 2.5B(iii); provided that if such Lender shall have satisfied the requirements of Section 2.5B(iii)(a) on the Effective Date or on the date of the Assignment Agreement pursuant to which it became a Lender, as applicable, nothing in this Section 2.5B(iii)(c) shall relieve the Borrower of its obligation to pay any additional amounts pursuant to Section 2.5B(ii)(c) in the event that, as a result of any Change in Law, such Lender is no longer legally permitted to deliver forms, certificates or other evidence at a subsequent date establishing the fact that such Lender is exempt from or entitled to a reduced rate of withholding.

(iv) Refunds. In the event that an additional payment is made under this Section 2.5B for the account of any Lender and such Lender, in its sole discretion, determines that it has finally and irrevocably received or been granted a credit against or release or remission for, or repayment of, any Tax paid or payable by it in respect of or calculated with reference to the deduction or withholding giving rise to such payment, such Lender shall, to the extent that it determines that it can do so without prejudice to the retention of the amount of such credit, relief, remission or repayment, pay to the Borrower such amount as such Lender shall, in its sole discretion exercised in good faith, have determined to be attributable to such deduction or withholding and which will leave such Lender (after such payment) in no worse position than it would have been in if the Borrower had not been required to make such deduction or withholding; provided that the Borrower, upon the request of a Lender, shall repay to such Lender the amount paid over pursuant to this paragraph (iv) (plus any interest, penalties, or other charges imposed by the relevant Governmental Authority) in the event that the Lender is required to repay such refund to such Governmental Authority. Nothing herein contained shall interfere with the right of a Lender to arrange its tax affairs in whatever manner it thinks fit nor oblige any Lender to claim any tax credit or to disclose any information relating to its tax affairs or any computations in respect thereof or require any Lender to do anything that would prejudice its ability to benefit from any other credits, reliefs, remissions or repayments to which it may be entitled.

(v) Other Taxes. The Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.

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C. Capital Adequacy Adjustment. In the event that any Lender or any Fronted LC Issuing Bank shall have determined that any Change in Law affecting such Lender or such Fronted LC Issuing Bank, any of its applicable lending offices or any corporation controlling such Lender or such Fronted LC Issuing Bank, as the case may be, regarding capital adequacy or liquidity has or would have the effect of reducing the rate of return on the capital of such Lender or such Fronted LC Issuing Bank or any corporation controlling such Lender or such Fronted LC Issuing Bank as a consequence of, or with reference to, such Lender’s Loans or Commitments, or participations therein or other obligations hereunder with respect to the Loans, or the Fronted Letters of Credit issued by such Fronted LC Issuing Bank, to a level below that which such Lender or such Fronted LC Issuing Bank or such controlling corporation could have achieved but for such Change in Law (taking into consideration the policies of such Lender or such Fronted LC Issuing Bank or such controlling corporation with regard to capital adequacy and liquidity), then from time to time, subject to Section 2.4C(iv), the Borrower shall pay to such Lender or such Fronted LC Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Fronted LC Issuing Bank or such controlling corporation on an after-tax basis for such reduction. Such Lender or such Fronted LC Issuing Bank, as the case may be, shall deliver to the Borrower (with a copy to the Administrative Agent) a written statement, setting forth in reasonable detail the basis for calculating the additional amounts, which statement shall be conclusive and binding upon all parties hereto absent manifest error.

2.6 Special Provisions Governing LIBOR Loans.

Notwithstanding any other provision of this Agreement to the contrary, the following provisions shall govern with respect to LIBOR Loans as to the matters covered:

A. Applicable Interest Rate Not Determinable or Unfair. If, by reason of circumstances affecting the interbank LIBOR market, (i) the Administrative Agent shall have determined (which determination shall be final and conclusive and binding upon all parties hereto) that adequate and reasonable means do not exist for ascertaining the interest rate applicable to LIBOR Loans for any Interest Period on the basis provided for in the definition of LIBOR or (ii) the Requisite Lenders shall determine (and notify the Administrative Agent) prior to the first day of any Interest Period that the LIBOR, as determined by the Administrative Agent, will not fairly and adequately reflect the cost to such Lenders of funding or maintaining their respective LIBOR Loans for such Interest Period, then the Administrative Agent shall promptly give notice (by telecopy or by telephone confirmed in writing) to the Borrower and each Lender of such determination, whereupon (a) no Loans may be made as, or converted to, LIBOR Loans until such time as the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such determination no longer exist and any such LIBOR Loans shall be repaid on the last day of the then current Interest Period applicable thereto, and (b) any Notice of Borrowing or Conversion/Continuation Notice given by the Borrower with respect to the Loans in respect of which such determination was made shall be ineffective and deemed to be rescinded by the Borrower.

B. Illegality or Impracticability of LIBOR Loans. In the event that on any date any Lender shall have determined (which determination shall be final and conclusive and binding upon all parties hereto but shall be made only after consultation with the Borrower and the Administrative Agent) that the making, maintaining or continuation of its LIBOR Loans (i) has become unlawful as a result of compliance by such Lender in good faith with any law, treaty, governmental rule, regulation, guideline or order (or would conflict with any such treaty, governmental rule, regulation, guideline or order not having the force of law even though the failure to comply therewith would not be unlawful) or (ii) has become impracticable, or would cause such Lender material hardship, as a result of contingencies occurring after the date of this Agreement which materially and adversely affect the interbank LIBOR market or the position of such Lender in that market, then, and in any such event, such Lender shall be an “Affected Lender” and it shall on that day give notice (by telecopy or by telephone confirmed in writing) to the Borrower and the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each other Lender). Thereafter (a) the obligation of the Affected Lender to

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make Loans as, or to convert Loans to, LIBOR Loans shall be suspended until such notice shall be withdrawn by the Affected Lender, (b) to the extent such determination by the Affected Lender relates to a Borrowing of LIBOR Loans then being requested by the Borrower pursuant to a Notice of Borrowing or a Conversion/Continuation Notice, the Affected Lender shall make its applicable Loan as (or continue its applicable Loan as or convert its applicable Loan to, as the case may be) a Base Rate Loan, (c) the Affected Lender’s obligation to maintain its outstanding LIBOR Loans (the “Affected Loans”) shall be terminated at the earlier to occur of the expiration of the Interest Period then in effect with respect to the Affected Loans or when required by law, and (d) the Affected Loans shall automatically convert into Base Rate Loans on the date of such termination. Notwithstanding the foregoing, to the extent a determination by an Affected Lender as described above relates to a Borrowing of LIBOR Loans then being requested by the Borrower pursuant to a Notice of Borrowing or a Conversion/Continuation Notice, the Borrower shall have the option, subject to the provisions of Section 2.6C, to rescind such Notice of Borrowing or Conversion/Continuation Notice as to all Lenders by giving notice (by telecopy or by telephone confirmed in writing) to the Administrative Agent of such rescission on the date on which the Affected Lender gives notice of its determination as described above (which notice of rescission the Administrative Agent shall promptly transmit to each other Lender). Except as provided in the immediately preceding sentence, nothing in this Section 2.6B shall affect the obligation of any Lender other than an Affected Lender to make or maintain Loans as, or to convert Loans to, LIBOR Loans in accordance with the terms hereof.

C. Compensation For Breakage. The Borrower shall compensate each Lender upon written request by such Lender (which request shall set forth the basis for requesting such amounts) for all reasonable losses, expenses and liabilities (including any interest paid by such Lender to lenders of funds borrowed by it to make or carry its LIBOR Loans and any loss, expense or liability sustained by such Lender in connection with the liquidation or re-employment of such funds) which such Lender may sustain: (i) if for any reason (other than a default by such Lender) any LIBOR Loan of such Lender is not made on a date specified therefor in a Notice of Borrowing or Conversion/Continuation Notice or in a telephonic request for such Borrowing, (ii) if any prepayment or other principal payment of, or any conversion of, any LIBOR Loan made by such Lender occurs on a date other than the last day of an Interest Period applicable to such Loan (including as a result of Section 2.7) or (iii) if any prepayment of any LIBOR Loan made by such Lender is not made on any date specified in a notice of prepayment given by the Borrower.

D. Assumptions Concerning Funding of LIBOR Loans. Calculation of all amounts payable to a Lender under this Section 2.6 and under Sections 2.5A and 2.5C shall be made as though that Lender had actually funded each of its relevant LIBOR Loans through the purchase of a LIBOR deposit bearing interest at the rate obtained pursuant to clause (i) of the definition of “LIBOR” in an amount equal to the amount of such LIBOR Loan and having a maturity comparable to the relevant Interest Period and through the transfer of such LIBOR deposit from an offshore office of that Lender to a domestic office of that Lender in the United States of America; provided that each Lender may fund each of its LIBOR Loans in any manner it sees fit and the foregoing assumptions shall be utilized only for the purposes of calculating amounts payable under this Section 2.6 and under Sections 2.5A and 2.5C.

2.7 Replacement of a Lender.

Anything contained herein to the contrary notwithstanding, in the event that: (i) any Lender shall give notice to the Borrower that such Lender is an Affected Lender or that such Lender is entitled to receive payments under Section 2.5, 2.6A or 2.6B (including, without limitation, any such payments resulting from any change by such Lender in the office through which it makes LIBOR Loans), the circumstances which have caused such Lender to be an Affected Lender or which entitle such Lender to receive such payments shall remain in effect, and such Lender shall fail to withdraw such notice within

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five Business Days after the Borrower’s request for such withdrawal, (ii) at any time any Lender is a Defaulting Lender or (iii) at any time any Lender ceases to be a NAIC Approved Bank, then, with respect to each such Lender (a “Terminated Lender”), the Borrower may, at its sole expense and effort, by giving written notice to the Administrative Agent and such Terminated Lender of its election to do so, elect to cause such Terminated Lender (and such Terminated Lender hereby irrevocably agrees) to assign all of its Commitment, outstanding Credit Exposure and other interests, rights and obligations hereunder to one or more Persons which are Eligible Assignees at such time (each a “Replacement Lender”) in accordance with the provisions of Section 8.1 (including the consents of the Administrative Agent and each Fronted LC Issuing Bank required thereunder) for a purchase price equal to the sum of (x) the aggregate outstanding principal amount of the Loans held by such Terminated Lender and (y) the LC Disbursements funded by such Terminated Lender that have not then been reimbursed by the Borrower, together with accrued interest thereon and accrued and theretofore unpaid fees owing to such Terminated Lender under Section 2.3 to but not including the date of assignment, to be paid by the relevant Replacement Lender on the date of such assignment; provided that (a) on the effective date of such assignment, the Borrower shall pay any amounts payable to such Terminated Lender to the date of such assignment pursuant to Section 2.5 or 2.6 or otherwise as if it were a prepayment and (b) in the case of any such assignment resulting from a claim for payments under Section 2.5, 2.6A or 2.6B, such assignment will result in the reduction in such payments. Upon the completion of such assignment and the payment of all amounts owing to any Terminated Lender, such Terminated Lender shall no longer constitute a “Lender” for purposes hereof; provided that any right of such Terminated Lender to indemnification hereunder shall survive as to such Terminated Lender.

2.8 Mitigation.

Each Lender agrees that, as promptly as practicable after the officer of such Lender responsible for administering the Loans of such Lender becomes aware of the occurrence of an event or the existence of a condition that would cause such Lender to become an Affected Lender or that would entitle such Lender to receive payments under Section 2.5 or Section 2.6, it will, to the extent not inconsistent with the internal policies of such Lender and any applicable legal or regulatory restrictions, use reasonable efforts (i) to make, issue, fund or maintain the Commitment of such Lender or the Affected Loans of such Lender through another lending office of such Lender, or (ii) take such other measures as such Lender may deem reasonable, if as a result thereof the circumstances which would cause such Lender to be an Affected Lender would cease to exist or the additional amounts which would otherwise be required to be paid to such Lender pursuant to Section 2.5 or Section 2.6 would be materially reduced and if, as determined by such Lender in its sole discretion, the making, issuing, funding or maintaining of such Commitment or Loans through such other lending office or in accordance with such other measures, as the case may be, would not otherwise adversely affect such Commitment or Loans or the interests of such Lender; provided that such Lender will not be obligated to utilize such other lending office pursuant to this Section 2.8 unless the Borrower agrees to pay all incremental expenses incurred by such Lender as a result of utilizing such other lending office as described in clause (i) above. A certificate as to the amount of any such expenses payable by the Borrower pursuant to this Section 2.8 (setting forth in reasonable detail the basis for requesting such amount) submitted by such Lender to the Borrower (with a copy to the Administrative Agent) shall be conclusive absent manifest error.

2.9 Increase of the Commitments.

The Borrower may, at any time by notice to the Administrative Agent, propose an increase in the total Commitments hereunder (each such proposed increase being a “Commitment Increase”) either by having a Lender increase its Commitment then in effect (each an “Increasing Lender”) or by adding as a Lender with a new Commitment hereunder a Person which is an Eligible Assignee at such time (each an “Assuming Lender”) in each case with the approval of the Administrative Agent (not to be unreasonably

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withheld), which notice shall specify the name of each Increasing Lender and/or Assuming Lender, as applicable, the amount of the Commitment Increase and the portion thereof being assumed by each such Increasing Lender or Assuming Lender, and the date on which such Commitment Increase is to be effective (the “Commitment Increase Date”) (which shall be a Business Day at least three Business Days after delivery of such notice and 30 days prior to the Maturity Date); provided that:

(i) the minimum amount of the increase of the Commitment of any Increasing Lender, and the minimum amount of the Commitment of any Assuming Lender, as part of any Commitment Increase shall be in an amount that is an integral multiple of $5,000,000 and not less than $1,000,000;

(ii) immediately after giving effect to any Commitment Increase, the total Commitments hereunder shall not exceed $525,000,000;

(iii) no Event of Default shall have occurred and be continuing on the relevant Commitment Increase Date or shall result from any Commitment Increase;

(iv) the representations and warranties of the Borrower contained herein and in the other Loan Documents shall be true and correct in all material respects on and as of the relevant Commitment Increase Date to the same extent as though made on and as of such date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true, correct and complete in all material respects on and as of such earlier date; and

(v) in the case of any Assuming Lender that is not a Lender immediately prior to such Commitment Increase Date and is not listed on the NAIC Approved Bank List, such Assuming Lender and its Confirming Lender shall have entered into an agreement of the type contemplated in the definition of “Confirming Lender” in Section 1.1.

Each Commitment Increase (and the increase of the Commitment of each Increasing Lender and/or the new Commitment of each Assuming Lender, as applicable, resulting therefrom) shall become effective as of the relevant Commitment Increase Date upon receipt by the Administrative Agent, at or prior to 9:00 a.m. (New York City time) on such Commitment Increase Date, of (A) a certificate of a duly authorized officer of the Borrower stating that the conditions with respect to such Commitment Increase under this Section 2.9 have been satisfied and (B) an agreement, in form and substance satisfactory to the Borrower and the Administrative Agent, pursuant to which, effective as of such Commitment Increase Date, the Commitment of each such Increasing Lender shall be increased or each such Assuming Lender, as applicable, shall undertake a Commitment, duly executed by such Increasing Lender or Assuming Lender, as the case may be, and the Borrower and acknowledged by the Administrative Agent, together with such evidence and other related documents as the Administrative Agent may reasonably request with respect to the Borrower’s authorization of such Commitment Increase and its obligation hereunder. Upon the Administrative Agent’s receipt of a fully executed agreement from each Increasing Lender and/or Assuming Lender referred to in clause (B) above, together with the certificate referred to in clause (A) above, the Administrative Agent shall record the information contained in each such agreement in the Register and give prompt notice of the relevant Commitment Increase to the Borrower and the Lenders (including, if applicable, each Assuming Lender). On each Commitment Increase Date, the Borrower shall (i) prepay in full the Loans (if any) held by the Lenders that were outstanding immediately prior to giving effect to the relevant Commitment Increase, (ii) if the Borrower shall have so requested in accordance with this Agreement, borrow new Loans from all Lenders (including, if applicable, any Assuming Lender) such that, after giving effect thereto, the Loans are held ratably by the Lenders in accordance with their respective Commitments (after giving effect to such Commitment Increase) and (iii) pay to the Lenders the amounts, if any, payable under Section 2.6C.

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Notwithstanding anything herein to the contrary, no Lender shall be obligated to increase its Commitment hereunder.

2.10 Letters of Credit.

A. General. Subject to the terms and conditions set forth herein, at the request of the Borrower, the Lenders (in the case of Syndicated Letters of Credit) and the Fronted LC Issuing Banks (in the case of Fronted Letters of Credit) agree at any time and from time to time during the Availability Period to issue standby Letters of Credit for the account of the Borrower or any of its Subsidiaries. As of the Effective Date, all Existing Fronted Letters of Credit shall be deemed to have been issued on such date as Fronted Letters of Credit pursuant to this Agreement and shall be subject to and governed by the terms and conditions hereof. Letters of Credit issued hereunder (including Existing Fronted Letters of Credit) shall constitute utilization of the Commitments.

Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, the Borrower unconditionally and irrevocably agrees that the Borrower shall be fully liable hereunder for all obligations with respect to such Letter of Credit, including to reimburse the Lenders (with respect to each such Syndicated Letter of Credit) or the relevant Fronted LC Issuing Bank (with respect to each such Fronted Letter of Credit), as applicable, hereunder for any and all LC Disbursements and other drawings under such Letter of Credit and to pay all interest, fees and other amounts owing hereunder in respect of such Letter of Credit in accordance with the terms hereof, in each case as if it were the sole account party in respect of such Letter of Credit (the Borrower hereby irrevocably waiving any defenses that might otherwise be available to it as a guarantor or surety of the obligations of such a Subsidiary that is an account party in respect of any such Letter of Credit). The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of any of its Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of its Subsidiaries.

B. Notice of Issuance, Amendment, Renewal or Extension. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by Electronic Systems, if arrangements for doing so have been approved by the Administrative Agent) to the Administrative Agent and (in the case of a Fronted Letter of Credit) the relevant Fronted LC Issuing Bank (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit (and whether such Letter of Credit is to be a Syndicated Letter of Credit or a Fronted Letter of Credit) or (if applicable) identifying the outstanding Letter of Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension, as the case may be (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with Section 2.10E), the amount of such Letter of Credit, the name and address of the beneficiary thereof and the terms and conditions of (and such other information as shall be necessary to prepare, amend, renew or extend, as the case may be) such Letter of Credit.

With respect to any Letter of Credit, such Letter of Credit shall be in such form as the Borrower may request and as shall be reasonably satisfactory to the Administrative Agent (with respect to any Syndicated Letter of Credit) or the relevant Fronted LC Issuing Bank (with respect to any Fronted Letter of Credit to be issued by it) (and which shall not contain provisions that are inconsistent with the terms hereof).

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If requested by the Administrative Agent (in the case of a Syndicated Letter of Credit) or the relevant Fronted LC Issuing Bank (in the case of a Fronted Letter of Credit), the Borrower also shall submit a letter of credit application on JPMCB’s (in the case of a Syndicated Letter of Credit) or such Fronted LC Issuing Bank’s (in the case of a Fronted Letter of Credit) standard form in connection with any request for a Letter of Credit.

In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the Administrative Agent (in the case of a Syndicated Letter of Credit) or such Fronted LC Issuing Bank (in the case of a Fronted Letter of Credit) relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

C. Issuance and Administration of Syndicated Letters of Credit. Each Syndicated Letter of Credit shall be issued by all of the Lenders, acting through the Administrative Agent, at the time of issuance as a single multi-bank letter of credit, as provided in this Section 2.10C. The obligation of any Lender under any Syndicated Letter of Credit shall be several and not joint and, in the case of each Syndicated Letter of Credit, shall at any time be in an amount equal to such Lender’s Pro Rata Share of the aggregate undrawn amount of such Syndicated Letter of Credit, and each Syndicated Letter of Credit shall expressly so provide. Without the prior consent of each Lender, no Syndicated Letter of Credit may be issued that would vary the several and not joint nature of the obligations of the Lenders thereunder.

Each Syndicated Letter of Credit shall be executed and delivered by the Administrative Agent in the name and on behalf of, and as attorney-in-fact for, each Lender party to such Syndicated Letter of Credit, and the Administrative Agent shall act under each Syndicated Letter of Credit, and each Syndicated Letter of Credit shall expressly provide that the Administrative Agent shall act, as the agent of each Lender to (a) receive drafts, other demands for payment and other documents presented by the beneficiary under such Syndicated Letter of Credit, (b) determine whether such drafts, demands and documents are in compliance with the terms and conditions of such Syndicated Letter of Credit and (c) notify such Lender and the Borrower that a valid drawing has been made and the date that the related LC Disbursement is to be made; provided that the Administrative Agent shall have no obligation or liability for any LC Disbursement under such Syndicated Letter of Credit, and each Syndicated Letter of Credit shall expressly so provide. Each Lender hereby irrevocably appoints and designates the Administrative Agent as its attorney-in-fact, acting through any duly authorized officer of JPMCB, to execute and deliver in the name and on behalf of such Lender each Syndicated Letter of Credit to be issued by such Lender hereunder. Promptly upon the request of the Administrative Agent, each Lender will furnish to the Administrative Agent such powers of attorney or other evidence as any beneficiary of any Syndicated Letter of Credit may reasonably request in order to demonstrate that the Administrative Agent has the power to act as attorney-in-fact for such Lender to execute and deliver such Syndicated Letter of Credit.

D. Limitations on Amounts. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon such issuance, amendment, renewal or extension of each Letter of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension, (i) the LC Exposure shall not exceed the Letter of Credit Sublimit, (ii) the Aggregate Credit Exposure shall not exceed the aggregate amount of all Commitments and (iii) the Credit Exposure of each Lender shall not exceed such Lender’s Commitment. In issuing, amending, renewing or extending any Fronted Letter of Credit, the relevant Fronted LC Issuing Bank may presume that each of clauses (i) through (iii) of this Section 2.10D are satisfied unless notified to the contrary in writing by the Administrative Agent at least one Business Day prior to the date of such issuance, amendment, renewal or extension (provided that the Administrative Agent shall not have any liability to such Fronted LC Issuing Bank or any Lender for failing to provide any such notification at any time).

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E. Expiry Date. No Letter of Credit shall have an expiry date after the earlier of (a) the date one year after the date of issuance of such Letter of Credit and (b) five business days prior to the Commitment Termination Date, provided that any Letter of Credit with a one-year tenor may provide for the renewal thereof for additional one-year periods (which shall in no event extend beyond the date referred to in clause (b) above). Notwithstanding the foregoing, any Letter of Credit issued in the final year prior to the Maturity Date may expire no later than one year after the Maturity Date so long as the Borrower cash collateralizes an amount equal to 103% of the face amount of such Letter of Credit, by no later than thirty (30) days prior to the Maturity Date, in the manner described in Section 2.10F and otherwise on terms and conditions reasonably acceptable to the Administrative Agent and the relevant Fronted LC Issuing Bank (in the case of a Fronted Letter of Credit). In the case of any Letter of Credit that provides for the automatic renewal of the expiry date thereof unless the Administrative Agent or (in the case of any Fronted Letter of Credit) the relevant Fronted LC Issuing Bank shall give notice to the beneficiary thereof that such expiry date shall not be renewed, the Lenders shall be deemed to have authorized the Administrative Agent (with respect to each Syndicated Letter of Credit) and the relevant Fronted LC Issuing Bank (with respect to each Fronted Letter of Credit), as applicable, to permit the extension of such Letter of Credit pursuant to the terms thereof to an expiry date not later than the date permitted under the immediately preceding sentence; provided that the Administrative Agent or such Fronted LC Issuing Bank, as applicable, will not permit any such extension if (i) the Administrative Agent or such Fronted LC Issuing Bank, as applicable, has determined that it would not be permitted, or would have no obligation, at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof or (ii) the Administrative Agent or such Fronted LC Issuing Bank, as applicable, has received notice, at least seven Business Days (or such lesser number of days as the Administrative Agent or such Fronted LC Issuing Bank, as applicable, in its sole discretion shall agree to) prior to the last day of the period under the terms of such Letter of Credit during which a notice with respect to non-extension or non-renewal thereof may be provided to the beneficiary thereunder, from the Borrower or (upon the occurrence and during the continuance of a Potential Event of Default or an Event of Default or at any time upon or following the termination of the Commitments) the Requisite Lenders, in each case, requesting that such Letter of Credit not be permitted to extend (whereupon the Administrative Agent or such Fronted LC Issuing Bank, as applicable, shall promptly provide such notice in accordance with the terms of such Letter of Credit).

F. Provision of Cash Collateral. If an Event of Default shall occur and be continuing and the Borrower receives notice from the Administrative Agent or the Requisite Lenders demanding the deposit of cash collateral in respect of the outstanding Letters of Credit pursuant to this paragraph, the Borrower shall immediately deposit into an account established and maintained on the books and records of the Administrative Agent, which account may be a “securities account” (within the meaning of Section 8-501 of the Uniform Commercial Code as in effect in the State of New York (the “Uniform Commercial Code”)), in the name of the Administrative Agent and for the benefit of the Lenders and (with respect to Fronted Letters of Credit) the Fronted LC Issuing Banks, an amount in cash equal to 105% of the aggregate LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in Section 7.6 or Section 7.7. Such deposit shall be held by the Administrative Agent as collateral for the LC Exposure under this Agreement, and for this purpose the Borrower hereby grants a security interest to the Administrative Agent for the benefit of the Lenders and the Fronted LC Issuing Banks in such collateral account and in any financial assets (as defined in the Uniform Commercial Code) or other property held therein.

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G. Replacement of Fronted LC Issuing Bank. Any Fronted LC Issuing Bank may be replaced at any time by written agreement between the Borrower, the Administrative Agent, the replaced Fronted LC Issuing Bank and the successor Fronted LC Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement of a Fronted LC Issuing Bank. At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for account of the replaced Fronted LC Issuing Bank pursuant to Section 2.3. From and after the effective date of any such replacement, (i) the successor Fronted LC Issuing Bank shall have all the rights and obligations of the replaced Fronted LC Issuing Bank under this Agreement with respect to Fronted Letters of Credit to be issued thereafter and (ii) references herein to the term “Fronted LC Issuing Bank” shall be deemed to refer to such successor or to any previous Fronted LC Issuing Bank, or to such successor and all previous Fronted LC Issuing Bank, as the context shall require. After the replacement of a Fronted LC Issuing Bank hereunder, the replaced Fronted LC Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of a Fronted LC Issuing Bank under this Agreement with respect to Fronted Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Fronted Letters of Credit.

H. Non-NAIC Approved Banks. If, at any time after the Effective Date, a Lender ceases to be a NAIC Approved Bank, such Lender shall promptly notify the Administrative Agent and the Borrower thereof. At any time after the Effective Date in the event any Lender shall qualify as a NAIC Approved Bank hereunder by reason of entering into an agreement as contemplated hereby with a Confirming Lender which is a NAIC Approved Bank and such Confirming Lender ceases to be a NAIC Approved Bank, such Lender and such Confirming Lender shall promptly notify the Administrative Agent and the Borrower thereof.

I. Fronted LC Issuing Bank Agreements. Each Fronted LC Issuing Bank agrees that, unless otherwise requested by the Administrative Agent, such Fronted LC Issuing Bank shall report in writing to the Administrative Agent (i) on the first Business Day of each month, the daily activity (set forth by day) in respect of its Fronted Letters of Credit during the immediately preceding month, including all issuances, extensions, amendments and renewals, all expirations and cancellations and all disbursements and reimbursements (it being understood and agreed that no such reports shall be required at any time during which such Fronted LC Issuing Bank does not have Fronted Letters of Credit outstanding hereunder), (ii) on or prior to each Business Day on which such Fronted LC Issuing Bank expects to issue, amend, renew or extend any Fronted Letter of Credit, the date of such issuance, amendment, renewal or extension, and the aggregate face amount of the Fronted Letters of Credit to be issued, amended, renewed or extended by it and outstanding after giving effect to such issuance, amendment, renewal or extension occurred (and whether the amount thereof changed), it being understood that such Fronted LC Issuing Bank shall not permit any issuance, renewal, extension or amendment resulting in an increase in the amount of any Fronted Letter of Credit to occur without first obtaining written confirmation from the Administrative Agent that it is then permitted under this Agreement, (iii) on each Business Day on which such Fronted LC Issuing Bank makes any LC Disbursement, the date of such LC Disbursement and the amount of such LC Disbursement, (iv) on any Business Day on which the Borrower fails to reimburse an LC Disbursement required to be reimbursed to such Fronted LC Issuing Bank on such day, the date of such failure and the amount and currency of such LC Disbursement and (v) on any other Business Day, such other information as the Administrative Agent shall reasonably request.

2.11 Reimbursement of LC Disbursements, Etc.

A. Reimbursement. If any Lender or (in the case of a Fronted Letter of Credit) the relevant Fronted LC Issuing Bank shall make any LC Disbursement in respect of any Letter of Credit, the Borrower agrees that it shall reimburse such Lender or such Fronted LC Issuing Bank, as the case may be, in respect of such LC Disbursement under a Letter of Credit by paying to the Administrative Agent in Dollars an amount equal to such LC Disbursement not later than noon, New York City time, on (i) the Business Day that the Borrower receives notice of such LC Disbursement, if such notice is received prior to 10:00 a.m., New York City time, or (ii) the Business Day immediately following the day that the Borrower receives such notice, if such notice is not received prior to such time.

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With respect to Fronted Letters of Credit, if the Borrower fails to make such payment when due, the Administrative Agent shall notify the relevant Fronted LC Issuing Bank and each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect of such Fronted Letter of Credit and such Lender’s Pro Rata Share thereof.

B. Borrower’s Reimbursement Obligations Absolute. The Borrower’s obligations to reimburse LC Disbursements as provided in Section 2.11A shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit, this Agreement or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by any Lender or (in the case of a Fronted Letter of Credit) the relevant Fronted LC Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply strictly with the terms of such Letter of Credit (provided that the Borrower shall not be obligated to reimburse such LC Disbursements unless payment is made against presentation of a draft or other document that at least substantially complies with the terms of such Letter of Credit), (iv) the occurrence of any Potential Event of Default or Event of Default, (v) the existence of any proceedings of the type described in Section 7.6 or Section 7.7 with respect to any guarantor of any of such reimbursement obligations, (vi) any lack of validity or enforceability of any of such reimbursement obligations against any guarantor of any of such reimbursement obligations, or (vii) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 2.11, constitute a legal or equitable discharge of the obligations of the Borrower hereunder.

Neither the Administrative Agent, nor any Lender or any LC Issuing Bank nor any of its respective Affiliates or any of its or their respective directors, officers, employees, agents and advisors shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond their control; provided that the foregoing shall not be construed to excuse the Administrative Agent, any Lender or any LC Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to special, indirect, consequential or punitive damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the gross negligence or willful misconduct of the Administrative Agent, any Lender or a LC Issuing Bank. The parties hereto expressly agree that:

(i) the Administrative Agent or (in the case of Fronted Letters of Credit) the relevant Fronted LC Issuing Bank may accept documents that appear on their face to be in substantial compliance with the terms of a Letter of Credit without responsibility for further investigation, regardless of any notice or information to the contrary, and may make payment upon presentation of documents that appear on their face to be in substantial compliance with the terms of such Letter of Credit;

(ii) the Administrative Agent or (in the case of Fronted Letters of Credit) the relevant Fronted LC Issuing Bank shall have the right, in its sole discretion, to decline to accept such documents and to make such payment if such documents are not in strict compliance with the terms of such Letter of Credit; and

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(iii) in the absence of gross negligence or willful misconduct on the part of the Administrative Agent or (in the case of Fronted Letters of Credit) the relevant Fronted LC Issuing Bank (as finally determined by a court of competent jurisdiction), the Administrative Agent or (in the case of Fronted Letters of Credit) the relevant Fronted LC Issuing Bank shall be deemed to have exercised care in each such determination.

C. Lenders’ Participations in Fronted Letters of Credit. By the issuance (or, in the case of the Existing Fronted Letters of Credit, the deemed issuance) of a Fronted Letter of Credit (or an amendment to a Fronted Letter of Credit increasing the amount thereof) by any Fronted LC Issuing Bank, and without any further action on the part of such Fronted LC Issuing Bank or the Lenders, such Fronted LC Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from such Fronted LC Issuing Bank, a participation in such Fronted Letter of Credit equal to such Lender’s Pro Rata Share of the aggregate amount available to be drawn under such Fronted Letter of Credit. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Fronted Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Fronted Letter of Credit or the occurrence and continuance of a Potential Event of Default or an Event of Default or reduction or termination of the Commitments.

In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for account of the Fronted LC Issuing Bank of each Fronted Letter of Credit, such Lender’s Pro Rata Share of each LC Disbursement made by such Fronted LC Issuing Bank in respect of such Fronted Letter of Credit promptly upon the request of such Fronted LC Issuing Bank at any time from the time such LC Disbursement is made until such LC Disbursement is reimbursed by the Borrower or at any time after any reimbursement payment is required to be refunded to the Borrower for any reason. Such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to Section 2.11A, the Administrative Agent shall distribute such payment to the relevant Fronted LC Issuing Bank or, to the extent that the Lenders have made payments pursuant to this Section 2.11C to reimburse such Fronted LC Issuing Bank, then to such Lenders and/or such Fronted LC Issuing Bank, as applicable. Any payment made by a Lender pursuant to this Section 2.11C to reimburse any Fronted LC Issuing Bank for any LC Disbursement shall not relieve the Borrower of its obligation to reimburse such LC Disbursement.

D. Letter of Credit Disbursement Procedures. (i) The following provisions shall apply to Syndicated Letters of Credit. The Administrative Agent shall, within a reasonable time following its receipt thereof, examine all documents purporting to represent a demand for payment under any Syndicated Letter of Credit. The Administrative Agent shall promptly after such examination (i) notify each of the Lenders and the Borrower by telephone (confirmed by telecopy) of such demand for payment and (ii) deliver to each Lender a copy of each document purporting to represent a demand for payment under such Syndicated Letter of Credit. With respect to any drawing properly made under a Syndicated Letter of Credit, each Lender will make an LC Disbursement in respect of such Syndicated Letter of Credit in accordance with its liability under such Syndicated Letter of Credit and this Agreement, such LC Disbursement to be made to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. The Administrative Agent will make any such LC Disbursement available to the beneficiary of such Syndicated Letter of Credit by promptly crediting the

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amounts so received, in like funds, to the account identified by such beneficiary in connection with such demand for payment. Promptly following any LC Disbursement by any Lender in respect of any Syndicated Letter of Credit, the Administrative Agent will notify the Borrower of such LC Disbursement; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Lenders with respect to any such LC Disbursement.

(ii) The following provisions shall apply to Fronted Letters of Credit. The relevant Fronted LC Issuing Bank shall, within a reasonable time following its receipt thereof, examine all documents purporting to represent a demand for payment under a Fronted Letter of Credit. Such Fronted LC Issuing Bank shall promptly after such examination notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy) of such demand for payment and whether such Fronted LC Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse such Fronted LC Issuing Bank and the Lenders with respect to any such LC Disbursement.

E. Interim Interest. If any LC Disbursement with respect to a Letter of Credit is made, then, unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to Base Rate Loans; provided that, if the Borrower fails to reimburse such LC Disbursement when due pursuant to Section 2.11A, Section 2.2D shall apply. With respect to any Fronted Letter of Credit, interest accrued pursuant to this paragraph shall be for account of the relevant Fronted LC Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant to Section 2.11C to reimburse such LC Issuing Bank shall be for account of such Lender to the extent of such payment.

F. Non-Receipt of Funds from Lenders. If any Lender fails to make available to the Administrative Agent or any Fronted LC Issuing Bank, as applicable, any amount required to be paid by such Lender in respect of any Letter of Credit by the time specified herein, the Administrative Agent (with respect to each Syndicated Letter of Credit) (to the extent that the Administrative Agent shall have funded such amount on behalf of such Lender, it being understood and agreed that the Administrative Agent shall have no obligation or liability to fund any amount under any Syndicated Letter of Credit other than in its capacity as a Lender thereunder) and the relevant Fronted LC Issuing Bank (with respect to each Fronted Letter of Credit), as applicable, shall, through the Administrative Agent, be entitled to recover from such Lender, on demand, such amount with interest thereon, for the period from the date such payment is required to the date on which such payment is immediately available to the Administrative Agent, at a rate per annum equal to the Federal Funds Effective Rate from time to time in effect. A certificate of the Administrative Agent or such Fronted LC Issuing Bank, as applicable, with respect to any amounts owing under this Section 2.11F shall be conclusive absent manifest error.

G. Adjustment of Pro Rata Shares. (i) With respect to Syndicated Letters of Credit, upon (a) each increase of the Commitments pursuant to Section 2.9, (ii) the assignment by a Lender of all or a portion of its Commitment and its interests in the Syndicated Letters of Credit pursuant to an Assignment Agreement or (iii) each reallocation or readjustment pursuant to Section 2.12(c), the Administrative Agent shall promptly notify each beneficiary under an outstanding Syndicated Letter of Credit of the Lenders that are parties to such Syndicated Letter of Credit and their respective Pro Rata Share as of the effective date of, and after giving effect to, such increase, assignment, reallocation or readjustment, as the case may be.

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(ii) With respect to Fronted Letters of Credit, notwithstanding anything herein to the contrary, upon (a) each increase of the Commitments pursuant to Section 2.9, each Lender’s participation in each Fronted Letter of Credit then outstanding shall automatically be adjusted to reflect its Pro Rata Share after giving effect to such increase, (b) the assignment by a Lender of all or a portion of its Commitment and its interests in the Fronted Letters of Credit pursuant to an Assignment Agreement respective assigning Lender’s participation in each Fronted Letter of Credit then outstanding shall automatically be adjusted to reflect, and the respective assignee Lender shall be deemed to acquire a participation in each such Fronted Letter of Credit in an amount equal to, its Pro Rata Share and (c) each any reallocation or readjustment pursuant to Section 2.12(c), each Lender’s participation interests in each Fronted Letter of Credit then outstanding shall automatically be adjusted to reflect such Lender’s Pro Rata Share after giving effect to such reallocation or readjustment.

2.12 Defaulting Lenders.

Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:

(a) commitment fees shall cease to accrue on the unused portion of the Commitment of such Defaulting Lender pursuant to Section 2.3A;

(b) the Commitment and Credit Exposure of such Defaulting Lender shall not be included in determining whether all Lenders or the Requisite Lenders have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section 8.5), provided that any waiver, amendment or modification (i) described in Section 8.5(A)(i) and 8.5(B)(i), (ii) requiring the consent of all Lenders or (iii) each affected Lender which affects such Defaulting Lender in a manner more adversely than other affected Lenders shall, in each case, require the consent of such Defaulting Lender;

(c) if any LC Exposure exists at the time a Lender becomes a Defaulting Lender then:

(i) all or any part of such LC Exposure with respect to each outstanding Letter of Credit shall be reallocated among the non-Defaulting Lenders in accordance with their respective Pro Rata Shares but only to the extent (x) the sum of all non-Defaulting Lenders’ Credit Exposures and such Defaulting Lender’s LC Exposure does not exceed the aggregate amount of all non-Defaulting Lenders’ Commitments and (y) the conditions set forth in Section 3.2(ii) and Section 3.2(iii) are satisfied at such time; and

(ii) if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall within three Business Days following notice by the Administrative Agent cash collateralize such Defaulting Lender’s LC Exposure with respect to each Fronted Letter of Credit only (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 2.10F for so long as such LC Exposure is outstanding;

(iii) if the Borrower cash collateralizes any portion of such Defaulting Lender’s LC Exposure pursuant to this Section 2.12(c), the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.3B(i) with respect to such Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;

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(iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to this Section 2.12(c), then the fees payable to the Lenders pursuant to Section 2.3B(i) shall be adjusted in accordance with such non-Defaulting Lenders’ Pro Rata Share; and

(v) if all or any portion of any Defaulting Lender’s LC Exposure is neither cash collateralized nor reallocated pursuant to this Section 2.12(c), then, without prejudice to any rights or remedies of any LC Issuing Bank or any Lender hereunder, all letter of credit fees payable under Section 2.3B(i) with respect to such Defaulting Lender’s LC Exposure with respect to any Fronted Letter of Credit shall be payable to the relevant Fronted LC Issuing Bank until such LC Exposure is cash collateralized and/or reallocated; and

(d) so long as any Lender is a Defaulting Lender, no Fronted LC Issuing Bank shall be required to issue, amend, renew or extend any Fronted Letter of Credit, unless such Fronted LC Issuing Bank is satisfied that the related exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with Section 2.12(c), and participating interests in any such newly issued or increased Fronted Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.12(c)(i) (and the Defaulting Lender(s) shall not participate therein).

If (i) a Bankruptcy Event with respect to a Person as to which any Lender is, directly or indirectly, a subsidiary shall occur following the date hereof and for so long as such event shall continue or (ii) any Fronted LC Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its obligations under one or more other agreements in which such Lender commits to extend credit, such Fronted LC Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless such Fronted LC Issuing Bank shall have entered into arrangements with the Borrower or such Lender, reasonably satisfactory to such Fronted LC Issuing Bank to defease any risk to it in respect of such Lender hereunder.

In the event that the Administrative Agent, the Borrower and (if there are any Fronted Letters of Credit then outstanding) the relevant Fronted LC Issuing Banks agree that a Lender which is a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the LC Exposure of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment (including readjusting the Lenders’ respective participation interests in any outstanding Fronted Letters of Credit and the Lender’s respective Pro Rata Shares of any outstanding Syndicated Letters of Credit) and on such date such Lender shall purchase at par such of the Loans of the other Lenders as the Administrative shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Pro Rata Share.

SECTION 3. CONDITIONS PRECEDENT

3.1 Conditions to Effectiveness .

The effectiveness of this Agreement and the obligation of each Lender to make any Credit Extension hereunder is subject to the satisfaction of the following conditions:

A. Borrower Documents. The Borrower shall deliver or cause to be delivered to the Administrative Agent on behalf of each Lender the following:

(i) Certified copies of the Organizational Documents of the Borrower, each dated a recent date prior to the Effective Date, certified as of a recent date prior to the Effective Date by the appropriate governmental official or an officer of the Borrower, as applicable;

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(ii) Resolutions of the board of directors (or similar governing body) of the Borrower approving and authorizing the execution, delivery and performance of the Loan Documents to which it is a party and certified as of the Effective Date by an officer of the Borrower as being in full force and effect without modification or amendment;

(iii) Signature and incumbency certificates of the officers of the Borrower executing on behalf of the Borrower the Loan Documents to which it is a party;

(iv) An executed copy of each Note requested by a Lender prior to the Effective Date;

(v) A good standing certificate from the Secretary of State of the State of Delaware certified as of a recent date prior to the Effective Date;

(vi) A certificate from an officer of the Borrower certifying satisfaction of the conditions set forth in Sections 3.2(ii) and (iii) as of the Effective Date.

B. Opinion of Counsel. The Administrative Agent shall have received an originally executed copy of the written opinion of Alston & Bird LLP, special New York counsel for the Borrower, addressed to the Lenders and the Agent and dated the Effective Date and in form and substance reasonably satisfactory to the Administrative Agent.

C. Payment of Fees And Expenses. The Borrower shall have paid (i) to the Arrangers, the Agents and the Lenders all fees required to be paid on the Effective Date in connection with this Agreement and (ii) to the Agents all reasonable costs and expenses (including legal fees and expenses of counsel to the Administrative Agent) required to be paid in connection with the preparation, execution and delivery of this Agreement for which written invoices shall have been submitted to the Borrower.

D. Existing Credit Agreement. The Administrative Agent shall have received evidence satisfactory to it that, on the Effective Date, the Borrower has repaid in full all Indebtedness of the Borrower (including accrued interest and fees) under the Existing Credit Agreement and all commitments of the lenders thereunder shall have been terminated (and each Lender party to the Existing Credit Agreement immediately prior to the Effective Date hereby waives any requirement for prior notice under the Existing Credit Agreement with respect to any prepayment of such Indebtedness or termination of such commitments on the Effective Date) and all letters of credit under the Existing Credit Agreement shall have been cancelled and/or continued (as set forth in Section 2.10A) under this Agreement.

E. Lender Signature Pages. The Administrative Agent shall have received from each Lender a counterpart of this Agreement signed on behalf of such Lender.

F. Other Documents. The Administrative Agent shall have received such other documents as the Administrative Agent on behalf of the Lenders may reasonably request.

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding.

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3.2 Conditions to each Loan.

The obligation of each Lender to make any Loan or issue, amend, renew or extend any Letter of Credit hereunder, including any Loan to be made or any Letter of Credit to be issued on the Effective Date, is subject to the satisfaction of the following conditions:

(i) the Administrative Agent shall have received (a) in the case of any Borrowing, in accordance with the provisions of Section 2.1B, a Notice of Borrowing signed by the Borrower and (b) in the case of any Letter of Credit, in accordance with the provisions of Section 2.10B, a notice of issuance, amendment, renewal or extension signed by the Borrower;

(ii) the representations and warranties contained herein and in the other Loan Documents (other than, after the Effective Date, the representations and warranties set forth in the last sentence of Section 4.3C and in Section 4.4, Section 4.6A and Section 4.8) shall be true, correct and complete in all material respects on and as of the date of such Loan or the issuance, amendment, renewal or extension of such Letter of Credit to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true, correct and complete in all material respects on and as of such earlier date; and

(iii) no event shall have occurred and be continuing or would result from such Loan or the issuance, amendment, renewal or extension of such Letter of Credit that would constitute an Event of Default or a Potential Event of Default.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in clauses (ii) and (iii) of this Section 3.2.

SECTION 4. BORROWER’S REPRESENTATIONS AND WARRANTIES

In order to induce the Agents and the Lenders to enter into this Agreement and to induce the Lenders to make any Credit Extension hereunder, the Borrower represents and warrants to each Agent and each Lender that the following statements are true, correct and complete:

4.1 Organization, Powers, Qualification, Good Standing, Business and Subsidiaries.

A. Organization and Powers. The Borrower is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. Each Subsidiary is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, except where the failure to be duly organized, validly existing or in good standing has not had and could not reasonably be expected to have a Material Adverse Effect. The Borrower and each of its Material Subsidiaries has all requisite power and authority to own, lease and operate its material properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Loan Documents to which it is a party and to carry out the transactions contemplated thereby.

B. Qualification and Good Standing. The Borrower and each of its Subsidiaries is duly qualified to do business and in good standing in every jurisdiction where its assets are located and wherever necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has not had and could not reasonably be expected to have a Material Adverse Effect.

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C. Subsidiaries. Schedule 4.1C sets forth the ownership interest of the Borrower and each of its Subsidiaries in their respective Subsidiaries as of the Effective Date, and identifies each Subsidiary that is an Insurance Subsidiary as of the Effective Date.

4.2 Authorization of Borrowing, etc.

A. Authorization of Borrowing, etc. The execution, delivery and performance of each Loan Document to which it is a party have been duly authorized by all necessary action on the part of the Borrower.

B. No Conflict. The execution, delivery and performance by the Borrower of each Loan Document to which it is a party and the consummation of the transactions contemplated by each Loan Document to which it is a party do not and will not (i) violate any provision of any of the Organizational Documents of the Borrower or any of its Subsidiaries, (ii) violate any provision of any law or any governmental rule or regulation applicable to the Borrower or any of its Subsidiaries, except to the extent such violation could not reasonably be expected to have a Material Adverse Effect, (iii) violate any order, judgment or decree of any court or other agency of government binding on the Borrower or any of its Subsidiaries, except to the extent such violation could not reasonably be expected to have a Material Adverse Effect, (iv) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any Contractual Obligation of the Borrower or any of its Subsidiaries, except to the extent such conflict, breach or default could not reasonably be expected to have a Material Adverse Effect, (v) result in or require the creation or imposition of any Lien upon any of the properties or assets of the Borrower or any of its Subsidiaries, or (vi) require any approval of stockholders, partners or members or any approval or consent of any Person under any Contractual Obligation of the Borrower or any of its Subsidiaries, except for such approvals or consents which will be obtained on or before the Effective Date and disclosed in writing to the Administrative Agent and except for approvals and consents the failure to obtain could not reasonably be expected to have a Material Adverse Effect.

C. Governmental Consents. The execution, delivery and performance by the Borrower of each Loan Document to which it is a party and the consummation of the transactions contemplated by each Loan Document to which it is a party do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority.

D. Binding Obligation. Each of the Loan Documents to which it is a party has been duly executed and delivered by the Borrower and is the legally valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.

4.3 Financial Condition.

A. GAAP Financial Statements. The Borrower has heretofore delivered to the Administrative Agent (i) the audited consolidated balance sheet of the Borrower as at December 31, 2013 and the related audited consolidated statements of income, stockholders’ equity and cash flows of the Borrower for the Fiscal Year then ended, and (ii) the unaudited consolidated balance sheet of the Borrower as at June 30, 2014 and the related unaudited consolidated statements of income, stockholders’ equity and cash flows of the Borrower for the Fiscal Quarter then ended, together in each case with all related notes and schedules thereto, as applicable. All such statements of the Borrower were prepared in conformity with GAAP and fairly present, in all material respects, the financial position of the entities described in such financial statements as at the date thereof and the results of operations and cash flows of the entities described therein for the period then ended (subject to, in the case of such financial statement

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for such Fiscal Quarter, normal year-end audit adjustments and the absence of footnotes). Neither the Borrower nor any of its Subsidiaries has as of the Effective Date any contingent liability or liability for taxes, long-term lease or unusual forward or long-term commitment that is not reflected in the foregoing financial statements or the notes thereto and which in any such case would reasonably be expected to have a Material Adverse Effect.

B. Statutory Financial Statements. All annual convention statements for the Fiscal Years ended December 31, 2012 and 2013, including the financial statements on a statutory basis and the accompanying exhibits and schedules and supplements thereto (the “Annual Convention Statements”), in each case filed with any Applicable Insurance Regulatory Authority by the Insurance Subsidiaries, (a) were duly filed, (b) were prepared in accordance with SAP applied on a consistent basis throughout such periods except as otherwise stated therein or required by the rules and regulations of the Applicable Insurance Regulatory Authorities and in accordance with the books and records of the Insurance Subsidiaries and (c) present fairly, in accordance with such practices, the statutory financial position as at the date of, and the statutory results of its operations for the periods covered by such Annual Convention Statements. Each Insurance Subsidiary owns assets that qualify as legal reserve assets under applicable insurance laws in an amount at least equal to all such required reserves and other similar amounts of such Insurance Subsidiary, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

C. Statutory Reserves. The statutory reserves of each of the Insurance Subsidiaries (the “Statutory Reserves”) as set forth in the Annual Convention Statements and the Quarterly Convention Statements: (i) were determined in accordance with generally accepted actuarial standards consistently applied, (ii) were fairly stated in all material respects in accordance with sound actuarial principles, (iii) were based on actuarial assumptions that are in accordance with those specified in the related policy provisions, (iv) made adequate provision for all matured and unmatured liabilities of the Insurance Subsidiaries under the terms of its Insurance Contracts, Reinsurance Agreements and Retrocession Agreements at such date, (v) were computed and fairly stated in all material respects in accordance with SAP, and (vi) were in compliance with the requirements of all Applicable Insurance Regulatory Authorities, except where such noncompliance could not reasonably be expected to have a Material Adverse Effect. Since December 31, 2013, there has been no adverse change in the Statutory Reserves of any of the Insurance Subsidiaries, except for changes that would not reasonably be expected to have a Material Adverse Effect.

4.4 No Material Adverse Change.

Since December 31, 2013, no event or change has occurred that has caused or evidences, or would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

4.5 Title to Properties; Liens.

The Borrower and each of its Subsidiaries has (i) good and marketable title in fee simple in (in the case of fee interests in real property), (ii) valid leasehold interests in (in the case of leasehold interests in real or personal property), or (iii) good and marketable title to (in the case of all other personal property), all of its material properties and assets reflected in the financial statements referred to in Section 4.3A or in the most recent financial statements delivered pursuant to Section 5.1, in each case except for assets disposed of since the date of such financial statements and prior to the Effective Date or as otherwise permitted under Section 6.6. Except as permitted by this Agreement or as contemplated by the Loan Documents, all such properties and assets are free and clear of Liens.

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4.6 No Litigation; Compliance with Laws.

A. Except as disclosed on Schedule 4.6, there are no actions, suits, proceedings (whether administrative, judicial or otherwise), arbitrations or governmental investigations (whether or not purportedly on behalf of the Borrower or any of its Subsidiaries) at law or in equity, or before or by any Governmental Authority, domestic or foreign (including any Environmental Claims), that are pending or, to the knowledge of the Borrower or any of its Subsidiaries, threatened against or affecting the Borrower or any of its Subsidiaries or any property of the Borrower or any of its Subsidiaries and that (i) individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect or (ii) involve any of the Loan Documents or the transactions contemplated thereby. There has been no change in the status of the matters disclosed on Schedule 4.6 that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect.

B. Neither the Borrower nor any of its Subsidiaries (i) is in violation of any applicable laws (including Environmental Laws) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect or (ii) is subject to or in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations of any Governmental Authority, domestic or foreign, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

4.7 Payment of Taxes.

Except as otherwise permitted under Section 5.5, all tax returns and reports of the Borrower and its Subsidiaries required to be filed by any of them have been timely filed, and all taxes due and payable and all assessments, fees and other governmental charges imposed upon the Borrower and its Subsidiaries and upon their respective properties, assets, income, businesses and franchises which are due and payable have been paid when due and payable, except to the extent the failure to so file or pay could not reasonably be expected to have a Material Adverse Effect. Neither the Borrower nor any of its Subsidiaries knows of any proposed tax assessment against the Borrower or any of its Subsidiaries which is not adequately reserved in accordance with GAAP and being contested by the Borrower or such Subsidiary in good faith and by appropriate proceedings.

4.8 No Default.

Neither the Borrower nor any of its Subsidiaries is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any of its Contractual Obligations, and no condition exists that, with the giving of notice or the lapse of time or both, would constitute such a default, except where the consequences, direct or indirect, of such default or defaults, if any, could not reasonably be expected to have a Material Adverse Effect.

4.9 Governmental Regulation.

The Borrower is not subject to regulation under the Investment Company Act of 1940 or under any federal or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or any portion of the Obligations unenforceable. The Borrower is not a “registered investment company” or a company “controlled” by a “registered investment company” or a “principal underwriter” of a “registered investment company” as such terms are defined in the Investment Company Act of 1940.

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4.10 Securities Activities.

Neither the Borrower nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of any Credit Extension hereunder will be used to purchase or carry any such margin stock or to extend credit to others for the purpose of purchasing or carrying any such margin stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, U or X of the FRB.

4.11 Employee Benefit Plans.

A. Each of the Borrower and its Subsidiaries are in all material respects in compliance with all applicable provisions and requirements of ERISA and the Internal Revenue Code and the regulations and published interpretations thereunder with respect to each Employee Benefit Plan, and have performed all their obligations under each Employee Benefit Plan, except where the failure to do so could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Each Employee Benefit Plan that is intended to be qualified under Section 401(a) of the Internal Revenue Code has received a favorable determination letter from the Internal Revenue Service, or is maintained under a prototype or volume submitter plan and may rely on a favorable opinion or advisory letter issued by the Internal Revenue Service with respect to such prototype or volume submitter plan, and the Borrower is not aware of any circumstances likely to result in revocation of such favorable determination, opinion or advisory letter.

B. No liability to the PBGC (other than required premium payments), the Internal Revenue Service, any Employee Benefit Plan or any trust established under Title IV of ERISA (other than required contributions which have been timely made when due) has been or is expected to be incurred by the Borrower, any Subsidiary or any ERISA Affiliate, and no ERISA Event has occurred or is reasonably expected to occur, in each case that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

C. Except to the extent required under Section 4980B of the Internal Revenue Code, no Employee Benefit Plan provides health or welfare benefits (through the purchase of insurance or otherwise) for any retired or former employee of the Borrower and its Subsidiaries that have not been accrued on the Borrower’s consolidated financial statements in accordance with the Statement of Financial Accounting Standards No. 106. The Borrower has retained the right to amend or terminate its retiree medical arrangements at any time.

D. The present value of the aggregate benefit liabilities under each Pension Plan sponsored, maintained or contributed to by the Borrower, any Subsidiary or any ERISA Affiliate (determined as of the beginning of the most recent plan year on the basis of the actuarial assumptions specified for funding purposes in the most recent actuarial valuation for such Pension Plan), did not exceed the actuarial value of the assets of each such Pension Plan, in each case by an amount which could reasonably be expected to have a Material Adverse Effect.

4.12 Environmental Protection.

A. Neither the Borrower nor any of its Subsidiaries nor any of their respective Facilities or operations are subject to any outstanding written order, consent decree or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

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B. As of the Effective Date, neither the Borrower nor any of its Subsidiaries has received any letter or request for information under Section 104 of CERCLA or any comparable state law.

C. There are and, to the Borrower’s and each of its Subsidiaries’ knowledge, have been no conditions, occurrences, or Hazardous Materials Activities which could reasonably be expected to form the basis of an Environmental Claim against the Borrower or any of its Subsidiaries that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

D. Compliance with all current or reasonably anticipated future requirements pursuant to or under Environmental Laws is not reasonably expected to have a Material Adverse Effect.

4.13 Solvency.

The Borrower, individually, and together with each of its Subsidiaries (on a consolidated basis), is, and on each date on which the Borrower incurs any Obligations will be, Solvent.

4.14 Restrictions.

There are no contractual restrictions on the Borrower or any of its Subsidiaries which prohibit or otherwise restrict the transfer of cash or other assets from any Subsidiary to the Borrower, other than prohibitions or restrictions permitted under Section 6.4.

4.15 Insurance Licenses.

No Insurance License, the suspension, revocation, termination, non-renewal or limitation of which could reasonably be expected to have a Material Adverse Effect, is the subject of a proceeding for suspension, revocation, termination, non-renewal or limitation and, to the knowledge of the Borrower and its Subsidiaries, no such suspension, revocation, termination, non-renewal or limitation has been threatened by any Governmental Authority. No Insurance Subsidiary transacts any Insurance Business, directly or indirectly, in any jurisdiction where such business requires any Insurance License that is not validly maintained by such Insurance Subsidiary, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

4.16 Disclosure.

No representation or warranty of the Borrower contained in any of the Loan Documents or in any other document, certificate or written statement furnished to any of the Agents or any of the Lenders by or on behalf of the Borrower or any of its Subsidiaries for use in connection with the transactions contemplated by this Agreement contained as of the date such document or certificate was so furnished any untrue statement of a material fact or omitted to state a material fact (known to the Borrower or any of its Subsidiaries, in the case of any document not furnished by any of them) necessary in order to make the statements contained herein or therein not misleading in light of the circumstances in which the same were made. Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by the Borrower to be reasonable at the time made, it being recognized by the Agents and the Lenders that such projections as to future events are not to be viewed as facts and that actual results during the period or periods covered by any such projections may differ from the projected results. There are no facts known to the Borrower or any of its Subsidiaries (other than matters of a general economic nature) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and that have not been disclosed herein or in such other documents, certificates and statements furnished to each of the Agents for use in connection with the transactions contemplated hereby.

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4.17 Anti-Corruption Laws and Sanctions.

The Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower, its Subsidiaries and their respective officers and employees and to the knowledge of the Borrower its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of (a) the Borrower, any Subsidiary or to the knowledge of the Borrower any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, any agent of the Borrower or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No Borrowing or Letter of Credit, use of proceeds or other transactions contemplated by the Loan Documents will violate Anti-Corruption Laws or applicable Sanctions.

SECTION 5. BORROWER’S AFFIRMATIVE COVENANTS

The Borrower covenants and agrees that, so long as the Commitments hereunder shall remain in effect and until payment in full of the Loans and all other Obligations (other than indemnification and other contingent obligations that by the terms of this Agreement survive termination and as to which no demand shall have been made or given) and the expiration or termination of all Letters of Credit (or the cash collateralization thereof on terms satisfactory to the Administrative Agent (with respect to outstanding Syndicated Letters of Credit) or the relevant Fronted LC Issuing Bank (with respect to outstanding Fronted Letters of Credit)), unless the provisions of this Section 5 are waived or amended in accordance with Section 8.5, the Borrower shall perform all covenants in this Section 5.

5.1 Financial Statements and Other Reports.

The Borrower will deliver to the Administrative Agent (with, in the case of any of the following delivered in tangible form, a sufficient number of copies for each Lender):

(i) Quarterly Financial Statements: within five Business Days after the date on which the Borrower is required to file a quarterly report with the SEC with respect to any Fiscal Quarter ending after the Effective Date (but in any event not later than 50 days after the end of such Fiscal Quarter), the unaudited consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such Fiscal Quarter and the related consolidated statements of income, stockholders’ equity and cash flows of the Borrower and its Subsidiaries for such Fiscal Quarter and for the period from the beginning of the then-current Fiscal Year to the end of such Fiscal Quarter, setting forth in each case in comparative form the corresponding figures for the corresponding periods of the previous Fiscal Year, all in reasonable detail and certified by the chief financial officer of the Borrower as fairly presenting, in all material respects, the financial condition of the Borrower and its Subsidiaries as at the date indicated and the results of their operations and cash flows for the periods indicated in conformity with GAAP, subject to changes resulting from audit and normal year-end adjustments; provided that delivery by the Borrower of a quarterly report on Form 10-Q for such Fiscal Quarter shall be sufficient for purposes of this clause (i) so long as it contains all of the foregoing information;

(ii) Annual Financial Statements: within five Business Days after the date on which the Borrower is required to file an annual report with the SEC with respect to any Fiscal Year (but in any event not later than 95 days after the end of such Fiscal Year), (a) the consolidated balance sheets of the Borrower and its Subsidiaries as at the end of such Fiscal Year and the related consolidated statements of income, stockholders’ equity and cash flows of the Borrower and its Subsidiaries for such Fiscal Year, setting forth in each case in comparative form the corresponding figures for the previous Fiscal Year, in reasonable detail and certified by the chief financial officer of the Borrower as fairly presenting, in all

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material respects, the financial condition of the Borrower and its Subsidiaries as at the date indicated and the results of their operations and cash flows for the periods indicated; and (b) with respect to such consolidated financial statements a report thereon of PricewaterhouseCoopers LLP or other independent certified public accountants of recognized national standing selected by the Borrower, and reasonably satisfactory to the Administrative Agent (which report shall be unqualified as to going concern and scope of audit, and shall state that such consolidated financial statements fairly present, in all material respects, the consolidated financial position of the Borrower and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except as otherwise disclosed in such financial statements) and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards) together with a written statement by such independent certified public accountants stating that, in connection with their audit examination, no knowledge was obtained of any Event of Default under Section 6.2 or Section 6.9 or, if any such Event of Default shall exist, stating the nature and status thereof (it being understood that such statement shall be limited to the items that independent certified public accountants are permitted to cover in such statements pursuant to the professional standards and customs of the accounting profession);

(iii) Compliance Certificate: together with each delivery of financial statements of the Borrower and its Subsidiaries pursuant to Section 5.1(i) or (ii), a duly executed and completed Compliance Certificate;

(iv) Filings: (a) promptly upon their becoming available, copies of all financial statements, periodic reports (including reports on Form 8-K) and proxy statements filed with, or furnished to, the SEC or sent by the Borrower to its shareholders or other security holders, and (b) promptly following the reasonable request of the Administrative Agent or any Lender, a copy of all material information filed by the Borrower with any Governmental Authority to the Administrative Agent or such Lender;

(v) Notice of Default, etc.: promptly upon (a) the occurrence of any condition or event that constitutes an Event of Default or Potential Event of Default or notice being given to the Borrower or any of its Subsidiaries with respect thereto, (b) any Person giving any notice to the Borrower or any of its Subsidiaries or taking any other action with respect to a claimed default or event or condition of the type referred to in Section 7.2, or (c) the occurrence of any event or change that has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect, an Officer’s Certificate specifying the nature and period of existence of such condition, event or change, or specifying the notice given or action taken by any such Person and the nature of such claimed Event of Default, Potential Event of Default, default, event or condition, and what action the Borrower has taken, is taking and proposes to take with respect thereto;

(vi) Change in Rating: prompt written notice of any and all changes in the rating given the Borrower by Moody’s or S&P;

(vii) Insurance Reports and Filings:

(a) (1) prompt written notice to the Administrative Agent of the failure by any Insurance Subsidiary to file its Statutory Statements and any statements referred to in Section 4.3B or 4.3C and (2) promptly following the filing thereof, a complete copy of any Statutory Statement filed with respect to (A) an Insurance Subsidiary that has Statutory Surplus of $250,000,000 or more as of the date of such Statutory Statement and (B) the Borrower and/or its consolidated Insurance Subsidiaries, and (3) promptly following the request of the Administrative Agent or any Lender, a complete copy of any Statutory Statement and any statements referred to in Section 4.3B or 4.3C to the Administrative Agent or such Lender;

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(b) promptly following the request of the Administrative Agent or any Lender, copies of (1) each material examination and/or audit report or other similar report, in each case in final and binding form, submitted to any Material Insurance Subsidiary by any Applicable Insurance Regulatory Authority, and (2) all material information which the Lenders may from time to time reasonably request with respect to the nature or status of any material deficiencies or violations reflected in any such examination, report or other similar report; and

(viii) Insurance License Notices: promptly following notification thereof from a Governmental Authority, and in any event not later than five Business Days after receipt of such notice, written notice of the revocation, suspension, termination, non-renewal or limitation of, or the taking of any other action in respect of, any material Insurance License;

(ix) Environmental Notices: promptly following receipt thereof, a copy of any letter or request for information received by the Borrower or any Subsidiary under Section 104 of CERCLA or any comparable state law if the subject matter of such letter or request could reasonably be expected to have or result in a Material Adverse Effect; and

(x) Other Information: with reasonable promptness, such other information and data with respect to the Borrower or any of its Subsidiaries as from time to time may be reasonably requested by the Administrative Agent or any Lender.

5.2 Books and Records.

The Borrower will, and will cause each of its Subsidiaries to, (i) keep proper books of records and account in which full, true and correct entries in all material respects in conformity with GAAP and SAP, as applicable, consistently applied shall be made of all material dealings and transactions in relation to its business and activities; and (ii) permit representatives and agents of the Administrative Agent and the Syndication Agent (and, during the existence of an Event of Default, any Lender) to visit and inspect any of its properties or assets and examine and make abstracts from any of its books and records, upon reasonable prior notice during normal business hours and as often as may reasonably be desired, and to discuss the business, operations, properties and financial and other condition of the Borrower and its Subsidiaries with officers and employees of the Borrower and its Subsidiaries. The Borrower and its Subsidiaries shall pay the reasonable cost of any such visit, inspection, examination or discussion if an Event of Default or Potential Event of Default exists at the time thereof or is discovered as a result thereof (but shall have no responsibility therefor under any circumstance).

5.3 Existence.

Except as otherwise permitted by Section 6.6, the Borrower will, and will cause each of its Material Subsidiaries to, at all times preserve and keep in full force and effect its existence and all rights, privileges, licenses (including Insurance Licenses) and franchises material to its business; provided that neither the Borrower nor any of its Subsidiaries shall be required to preserve the existence of any Subsidiary, or any such right, privilege, license or franchise of the Borrower or such Subsidiary if the Borrower’s or such Subsidiary’s board of directors (or similar governing body) shall determine that the preservation of such existence, right, privilege, license or franchise is no longer desirable in the conduct of the business of such Person, and that the loss thereof or dissolution (as the case may be) is not disadvantageous in any material respect to the Borrower or such Subsidiary or the Lenders.

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5.4 Insurance.

The Borrower will maintain or cause to be maintained, with financially sound and reputable insurers, such public liability insurance, third party property damage insurance and casualty insurance with respect to liabilities, losses or damage in respect of the assets, properties and businesses of the Borrower and its Subsidiaries as may customarily be carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses, in each case in such amounts (giving effect to self-insurance), with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary for such Persons.

5.5 Payment of Taxes and Claims.

The Borrower will, and will cause each of its Subsidiaries to, pay (a) all Taxes imposed upon it or any of its properties or assets or in respect of any of its income, businesses or franchises before any material penalty or fine accrues thereon and (b) all claims (including claims for labor, services, materials and supplies) for sums that have become due and payable and that by law have or may become a Lien upon any of its properties or assets, prior to the time when any material penalty or fine shall be incurred with respect thereto, in each case, nonpayment of which could reasonably be expected to be, individually or in the aggregate, material to the Borrower and its Subsidiaries (taken as a whole); provided that no such Tax or claim need be paid if it is being contested in good faith by appropriate proceedings and adequate reserve or other appropriate provision, as shall be required in conformity with GAAP, shall have been made therefor.

5.6 Compliance with Laws.

The Borrower will, and will cause each of its Subsidiaries to, comply with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority (including all Environmental Laws), noncompliance with which could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. The Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

5.7 Use of Proceeds.

A. Use of Credit Extensions. The Borrower will use the proceeds of the Loans made hereunder and the Letters of Credit issued hereunder for general corporate purposes of the Borrower and its Subsidiaries, including (in the case of any Loans) the repayment of maturing commercial paper issued by the Borrower. The Borrower will not request any Borrowing or Letter of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Borrowing or Letter of Credit (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

B. Margin Regulations. The Borrower will not permit any part of the proceeds of the Loans made to the Borrower to be used, directly or indirectly, to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, U or X of the FRB.

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5.8 Claims Pari Passu.

The Borrower shall ensure that at all times the Obligations and any other claims of the Arrangers, the Agents and the Lenders arising hereunder or under any of the other Loan Documents rank at least pari passu with the claims of all of the Borrower’s or its Subsidiaries’ other senior unsecured creditors, except (i) those creditors whose claims are preferred by any bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally and (ii) those claims which are permitted to be secured under Section 6.1.

SECTION 6. BORROWER’S NEGATIVE COVENANTS

The Borrower covenants and agrees that, so long as the Commitments hereunder shall remain in effect and until payment in full of all of the Loans and all other Obligations (other than indemnification and other contingent obligations that by the terms of this Agreement survive termination and as to which no demand shall have been made or given) and the expiration or termination of all Letters of Credit (or the cash collateralization thereof on terms satisfactory to the Administrative Agent (with respect to outstanding Syndicated Letters of Credit) or the relevant Fronted LC Issuing Bank (with respect to outstanding Fronted Letters of Credit)), unless the provisions of this Section are waived or amended in accordance with Section 8.5, the Borrower shall perform, and shall cause each of its Subsidiaries to perform, all covenants in this Section 6.

6.1 Liens.

The Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, create, incur, assume or permit to exist any Lien on or with respect to any property or asset of any kind of the Borrower, whether now owned or hereafter acquired, or any income or profits therefrom, except:

(i) Liens existing on the Effective Date securing Indebtedness and listed on Schedule 6.1 and Liens on assets of Foreign Subsidiaries in favor of the Borrower or one of its Subsidiaries;

(ii) Liens imposed by law for Taxes that are not yet required to be paid pursuant to Section 5.5;

(iii) statutory Liens of landlords, banks (and rights of set-off), of carriers, warehousemen, mechanics, repairmen, workmen and material men, and other Liens imposed by law, in each case incurred in the ordinary course of business for amounts not yet overdue or for amounts that are overdue and that (in the case of any such amounts overdue for a period in excess of five days) are being contested in good faith by appropriate proceedings, so long as such reserves or other appropriate provisions, if any, as shall be required by GAAP shall have been made for any such contested amounts;

(iv) deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, performance and return-of-money bonds, Reinsurance Agreements, Retrocession Agreements and other similar obligations (exclusive of obligations for the payment of borrowed money) incurred in the ordinary course of business;

(v) Liens on pledges or deposits of cash or securities made by any Insurance Subsidiary as a condition to obtaining or maintaining any licenses issued to it by any Applicable Insurance Regulatory Authority;

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(vi) easements, rights-of-way, restrictions, encroachments, and other minor defects or irregularities in title to real property, in each case which do not and will not, individually or in the aggregate, interfere in any material respect with the use or value thereof;

(vii) any interest or title of a lessor or sublessor under any operating or true lease of real estate entered into by the Borrower or one of its Subsidiaries in the ordinary course of its business covering only the assets so leased;

(viii) Liens created pursuant to Capital Leases; provided that (a) such Liens are only in respect of the property or assets subject to, and secure only, such Capital Leases and (b) the sum of (1) the aggregate amount of Indebtedness secured by such Liens and (2) the aggregate amount of Indebtedness secured by Liens permitted by clause (ix) below does not exceed $75,000,000 at any time outstanding;

(ix) purchase money Liens in real property, improvements thereto or equipment hereafter acquired (or, in the case of improvements, constructed) by the Borrower or one of its Subsidiaries; provided that (a) the sum of (1) the aggregate amount of Indebtedness secured by such Liens and (2) the aggregate amount of Indebtedness secured by Liens permitted by clause (viii) above does not exceed $75,000,000 at any time outstanding, (b) such Lien is incurred, and the Indebtedness secured thereby is created, within ninety (90) days after such acquisition (or construction), (c) the Indebtedness secured thereby does not exceed 100% of the lesser of the cost or the fair market value of such real property, improvements or equipment at the time of such acquisition (or construction) and (d) such Lien does not apply to any other property or assets of the Borrower or any of its Subsidiaries;

(x) Liens given to secure the obligations of an Insurance Subsidiary under Reinsurance Agreements, Retrocession Agreements and other similar obligations (other than obligations for the payment of borrowed money), incurred by such Insurance Subsidiary in the ordinary course of business;

(xi) Liens securing judgments that do not constitute an Event of Default under Section 7.8;

(xii) Liens that are contractual rights of set-off (a) relating to the establishment of depository relations with banks not given in connection with the issuance of Indebtedness or (b) relating to pooled deposit or sweep accounts of the Borrower or any of its Subsidiaries to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business of the Borrower and its Subsidiaries;

(xiii) leases, subleases, licenses or sublicenses (including the provision of software or the licensing of other intellectual property rights), in each case, granted to others in the ordinary course of business that do not have an material adverse impact on the business of the Borrower and its Subsidiaries, taken as a whole;

(xiv) Liens on property or assets of any Person, or the Capital Stock of such Person, that becomes a Subsidiary after the Effective Date; provided that such Liens are in existence at the time such Person becomes a Subsidiary and were not created in anticipation thereof;

(xv) Liens given to secure the obligations in respect of the Warranty Business (other than obligations for the payment of borrowed money) incurred by the Borrower or any Subsidiary in the ordinary course of business

(xvi) Liens securing Non-Recourse Indebtedness;

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(xvii) Liens on Cash and Cash Equivalents securing obligations of the Borrower or any Subsidiary arising under Swap Agreements entered into for the reduction of the ordinary course of business risks and not for speculative purposes;

(xviii) cash held in escrow in compliance with requirements of the State of New York Insurance Department’s Circular Letter No. 33 (1979);

(xix) Liens (A) on cash advances or escrow deposits in favor of a seller of any asset or property to be acquired by the Borrower or any of its Subsidiaries, or (B) consisting of an agreement to dispose of any asset property in a disposition by the Borrower or any of its Subsidiaries not otherwise prohibited hereunder;

(xx) other Liens (in addition to Liens permitted under clauses (i) through (xix) above) securing Indebtedness of the Borrower or any of its Subsidiaries; provided that upon incurrence of such Indebtedness, the Borrower shall be in compliance with Section 6.2; and

(xxi) other Liens (in addition to Liens permitted under clauses (i) through (xx) above); provided, that the outstanding face amount of obligations secured by such Liens existing in reliance of this clause (xxi) shall not exceed 2.5% of Consolidated Adjusted Net Worth at any time of determination.

Notwithstanding any of the foregoing exceptions other than clause (xiv) above, the Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien upon the Capital Stock of any of its Subsidiaries owned by the Borrower or any such Subsidiary or upon any Indebtedness owed to such Subsidiary by the Borrower or any of its Subsidiaries; provided that, for avoidance of doubt, this Section 6.1 shall not restrict the Borrower or any Subsidiary from entering into any agreement relating to the sale of Capital Stock of any Subsidiary that contains restrictions on the Borrower or such Subsidiary granting any Lien upon, or transferring or otherwise disposing of, such Capital Stock pending such sale.

6.2 Priority Indebtedness.

The Borrower shall not at any time permit Priority Indebtedness to exceed 10% of Consolidated Adjusted Net Worth.

6.3 Acquisitions.

The Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly acquire all or substantially all of the assets or Capital Stock of any Person unless (a) immediately prior to, and after giving effect thereto, no Potential Event of Default or Event of Default shall have occurred and be continuing or would result therefrom; (b) all transactions in connection therewith shall be consummated, in all material respects, in accordance with all applicable laws and in conformity with all applicable Governmental Authorization; (c) the Borrower shall be in compliance with the financial covenants set forth in Section 6.9 on a pro forma basis after giving effect to such acquisition as of the last day of the Fiscal Quarter most recently ended; (d) with respect to any acquisition in which the aggregate consideration payable equals or exceeds 5% of Consolidated Adjusted Net Worth, the Borrower shall have delivered to the Administrative Agent promptly following the time of entering into a definitive purchase agreement for such acquisition, a Compliance Certificate evidencing compliance with Section 6.9 as required under clause (c) above, together with all relevant financial information with respect to such acquired assets, including the aggregate consideration for such acquisition and any other information required to demonstrate compliance with Section 6.9; and (e) in the case of the acquisition of Capital Stock of any Person, such Person’s board of directors or similar governing body shall not at any time have announced its intention to, or commenced any action to, oppose such acquisition (provided that this clause (e) shall only apply to the extent that proceeds of any Loan are used to finance all or any portion of such acquisition).

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6.4 Restrictions on Subsidiary Distributions.

The Borrower shall not, and shall not permit any of its Subsidiaries to, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind that limits in any material respect the ability of any Subsidiary to (a) pay dividends or make any other distributions on any of such Subsidiary’s Capital Stock owned by the Borrower or any other Subsidiary, (b) repay or prepay any Indebtedness owed by such Subsidiary to the Borrower or any other Subsidiary, (c) make loans or advances to the Borrower or any other Subsidiary or (d) transfer any of its property or assets to the Borrower or any other Subsidiary, in each case pursuant to any agreement that is material to the Borrower and its Subsidiaries taken as a whole, and that adversely affects, directly or indirectly, the repayment of the Obligations, other than restrictions under (i) this Agreement, (ii) agreements evidencing Indebtedness secured by Liens permitted by Section 6.1(xx) that impose restrictions on the property so acquired, (iii) any applicable law, rule or regulation or the Organizational Documents of such Subsidiary, (iv) any order from or agreement with an Applicable Insurance Regulatory Authority or any other instrument or agreement as described on Schedule 6.4, (v) any order from or agreement with an Applicable Insurance Regulatory Authority arising after the Effective Date which could not reasonably be expected to result in a Material Adverse Effect, (vi) customary provisions restricting assignments, subletting or other transfers contained in leases, licenses, Joint Venture agreements and similar agreements entered into in the ordinary course of business, (vii) customary restrictions and conditions in any agreement relating to the sale of assets pending such sale and (viii) restrictions and conditions in any instruments and/or agreements evidencing or otherwise related to equity or debt securities issued by Subsidiaries of the Borrower that operate primarily in the healthcare industry (or issued by an intermediate holding company parent, the majority of whose Subsidiaries operate primarily in the healthcare industry); provided, that, at the time of issuance thereof, the aggregate principal amount, liquidation value or similar amount of such securities does not exceed, when taken together with the principal amount, liquidation value or similar amount of any other securities issued in reliance of this clause (viii), 5.0% of Consolidated Adjusted Net Worth (determined immediately prior to the issuance of such securities).

6.5 Restricted Payments.

The Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, declare, order, pay, make or set apart any sum for any Restricted Payment if an Event of Default exists or would result therefrom; provided that any Subsidiary may at any time make Restricted Payments to its parent if such parent is the Borrower or a wholly-owned Subsidiary. Notwithstanding anything to the contrary contained herein, (i) the Borrower shall cause its Subsidiaries to make Restricted Payments in a timely manner to the Borrower necessary to enable the Borrower to repay the Obligations in accordance with this Agreement and (ii) if such Restricted Payments are not sufficient to enable the Borrower to repay the Obligations in accordance with this Agreement, the Borrower will use its reasonable best efforts to obtain the approvals of any Governmental Authority to permit its Insurance Subsidiaries to make Restricted Payments to the Borrower in an amount sufficient for the Borrower to repay such Obligations.

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6.6 Restriction on Fundamental Changes and Asset Sales.

The Borrower will not consolidate or merge with or into, or convey or transfer (or permit the conveyance or transfer of) all or substantially all of the properties and assets of the Borrower and its Subsidiaries (taken as a whole) to, any other Person unless (i) the surviving or acquiring entity (A) is a Person organized under the laws of the United States or any state thereof, (B) if other than the Borrower, expressly assumes the performance of the Obligations pursuant to documentation reasonably satisfactory to the Administrative Agent and the Syndication Agent and (C) after giving effect to such transaction, will have ratings on its senior, unsecured, non-credit-enhanced debt of at least BBB by S&P and Baa2 by Moody’s and (ii) immediately after giving effect to such transaction, no Event of Default or Potential Event of Default exists.

6.7 [Intentionally Omitted].

6.8 Transactions with Affiliates.

The Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service or the making of any intercompany loan) with any Affiliate of the Borrower or any of its Subsidiaries, except on fair and reasonable terms that are no less favorable to the Borrower or that Subsidiary, as the case may be, than those that might be obtained at the time in a comparable arm’s length transaction from a Person that is not an Affiliate; provided that the foregoing restriction shall not apply to (a) any transaction between the Borrower and its Subsidiaries or between such Subsidiaries, in each case to the extent otherwise permitted under the other provisions of Section 6; (b) reasonable and customary fees paid to members of the board of directors (or similar governing body) of the Borrower and its Subsidiaries; (c) compensation arrangements for officers and other employees of the Borrower and its Subsidiaries entered into in the ordinary course of business; (d) transactions described in Schedule 6.8, (e) transactions entered into in connection with an acquisition permitted by Section 6.3 and that are not material to the business, operations, properties or financial condition of the Borrower and its Subsidiaries, taken as a whole and (f) transactions with a value not in excess of $75,000,000 in the aggregate.

6.9 Financial Covenants.

(i) Maximum Indebtedness to Capitalization Ratio. The Borrower shall not permit the Indebtedness to Capitalization Ratio as of the last day of any Fiscal Quarter to exceed 0.35 to 1.0.

(ii) Minimum Consolidated Adjusted Net Worth. The Borrower shall not permit its Consolidated Adjusted Net Worth at any time to be less than the sum of (a) $3,317,000,000, and (b) 25% of Consolidated Net Income for each Fiscal Quarter (beginning with the Fiscal Quarter ending after June 30, 2014) for which Consolidated Net Income (measured at the end of each such Fiscal Quarter) is a positive amount and (c) 25% of the net cash proceeds received by the Borrower or any Subsidiary after June 30, 2014 from any capital contribution to, or issuance of any Capital Stock, Disqualified Capital Stock and Hybrid Securities (but only to the extent such Capital Stock, Disqualified Capital Stock and Hybrid Securities are included, at the time of issuance thereof, in Consolidated Adjusted Net Worth pursuant to the definition thereof) of, the Borrower or any Subsidiary (but excluding any issuance by a Subsidiary to the Borrower or to a wholly-owned Subsidiary, and any capital contribution by the Borrower or a Subsidiary to a wholly-owned Subsidiary).

SECTION 7. EVENTS OF DEFAULT

If any of the following conditions or events (“Events of Default”) shall occur:

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7.1 Failure to Make Payments When Due.

(i) Failure by the Borrower to pay any installment of principal of the Loan or any reimbursement obligation in respect of any LC Disbursement when due, whether at stated maturity, by acceleration, by notice of voluntary prepayment, by mandatory prepayment or otherwise; or (ii) failure by the Borrower to pay any interest on the Loan or LC Disbursement or any fee or any other amount due under this Agreement within three Business Days after the date due; or

7.2 Default in Other Agreements.

(i) Failure of the Borrower or any of its Subsidiaries to pay when due any principal of or interest on or any other amount payable in respect of one or more items of Material Indebtedness beyond the end of any grace period provided therefor, if any; or (ii) breach or default by the Borrower or any of its Subsidiaries with respect to any other material term of (a) one or more items of such Material Indebtedness or (b) any loan agreement, mortgage, indenture or other agreement relating to such item(s) of Material Indebtedness, in each case beyond the end of any grace period provided therefor, if any, if the effect of such breach or default is to cause, or to permit the holder or holders of such Material Indebtedness (or a trustee on behalf of such holder or holders) to cause, that Indebtedness to become or be declared due and payable (or redeemable) prior to its stated maturity or the stated maturity of any underlying obligation, as the case may be; or

7.3 Breach of Certain Covenants.

Failure of the Borrower to perform or comply with any term or condition contained in Section 5.1(v), Section 5.3 (with respect to the existence of the Borrower only), Section 5.7, Section 5.8 or Section 6; or

7.4 Breach of Warranty.

Any representation, warranty, certification or other statement made by the Borrower in any Loan Document, or by the Borrower or any of its Subsidiaries in any statement or certificate at any time given by the Borrower or any such Subsidiary in writing pursuant hereto or thereto, or in connection herewith or therewith shall be false in any material respect on the date as of which made; or

7.5 Other Defaults Under Loan Documents.

The Borrower shall default in the performance of or compliance with any term contained in this Agreement or any of the other Loan Documents to which it is a party, in each case other than any such term referred to in any other subsection of this Section 7, and such default shall not have been remedied or waived within 30 days after receipt by the Borrower of notice from the Administrative Agent of such default; or

7.6 Involuntary Bankruptcy; Appointment of Receiver, etc.

(i) A court of competent jurisdiction shall enter a decree or order for relief in respect of the Borrower or any of its Material Subsidiaries in an involuntary case under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, which decree or order is not stayed; or any other similar relief shall be granted under any applicable federal or state law; or (ii) an involuntary case shall be commenced against the Borrower or any of its Material Subsidiaries under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over the Borrower or any of its Material Subsidiaries, or over all or a substantial part of their respective property, shall have been entered; or there shall have occurred the involuntary appointment of an interim receiver, trustee or other custodian of the Borrower or any of its Material Subsidiaries for all or a substantial part of their respective property; or a warrant of attachment, execution or similar process shall have been issued against any substantial part of the property of the Borrower or any of its Material Subsidiaries, and any such event described in this clause (ii) shall continue for 60 days unless dismissed, bonded or discharged; or

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7.7 Voluntary Bankruptcy; Appointment of Receiver, etc.

(i) The Borrower or any of its Material Subsidiaries shall have an order for relief entered with respect to it or commence a voluntary case under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law, or shall consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property; or the Borrower or any of its Material Subsidiaries shall make any assignment for the benefit of creditors; or (ii) the Borrower or any of its Material Subsidiaries shall be unable, or shall fail generally, or shall admit in writing their respective inability, to pay its debts as such debts become due; or the board of directors (or similar governing body) of the Borrower or any of its Material Subsidiaries (or any committee thereof) shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to in this Section 7.7 or in Section 7.6; or

7.8 Judgments and Attachments.

Any money judgment, writ or warrant of attachment or similar process involving in excess in the aggregate of $100,000,000 which is not adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage shall be entered or filed against the Borrower or any of its Subsidiaries, or any of their respective assets, and shall remain undischarged, unvacated, unbonded or unstayed for a period of 60 days (or in any event later than five days prior to the date of any proposed sale thereunder); or

7.9 Dissolution.

Any order, judgment or decree shall be entered against the Borrower or any of its Material Subsidiaries decreeing the dissolution or split up of such Person; or

7.10 Employee Benefit Plans.

There shall occur one or more ERISA Events which individually or in the aggregate results in or is reasonably be expected to result in liability of the Borrower, any Subsidiary or any ERISA Affiliate in excess of $100,000,000 during the term of this Agreement; or

7.11 Change in Control.

A Change of Control shall occur; or

7.12 Repudiation of Obligations.

At any time after the execution and delivery thereof, (i) this Agreement for any reason shall cease to be in full force and effect (other than by reason of the satisfaction in full of the Obligations) or shall be declared null and void or (ii) the Borrower shall contest the validity or enforceability of any Loan Document to which it is a party or deny in writing that it has any further liability under any Loan Document to which it is a party; or

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7.13 Insurance Licenses.

Any one or more Insurance Licenses shall be suspended, revoked, terminated, not renewed or limited, or any other action shall be taken by a Governmental Authority, in each case which would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect;

THEN (i) upon the occurrence of any Event of Default described in Section 7.6 or Section 7.7, the Commitments shall automatically terminate and each of the unpaid principal amount of and accrued interest on the Loans and all other Obligations shall automatically become immediately due and payable, in each case, without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by the Borrower and (ii) upon the occurrence and during the continuation of any other Event of Default, the Administrative Agent shall, upon the written request or with the written consent of the Requisite Lenders, by notice to the Borrower, (a) terminate the Commitments, (b) declare all or any portion of the amounts described in clause (i) above to be, and the same shall forthwith become, immediately due and payable and/or (c) demand provision of cash collateral from the Borrower pursuant to Section 2.10F.

SECTION 8. MISCELLANEOUS

8.1 Assignments and Participations in Loans and Notes.

A. Right to Assign. Each Lender shall have the right at any time to sell, assign or transfer all or a portion of its rights and obligations under this Agreement to one or more Persons which are Eligible Assignees at the time of such sale, assignment or transfer, including all or a portion of its Commitment, Loans owing to it, interests and/or obligations in respect of Letters of Credit or other Obligations (provided that each such assignment shall be of a uniform, and not varying, percentage of all rights and obligations under and in respect of any Loan and any related Commitment) with the prior written consent (such consent not to be unreasonably withheld) of:

(i) the Borrower, provided that (x) no consent of the Borrower shall be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee and (y) the Borrower shall be deemed to have consented to any such sale, assignment or transfer unless it shall object thereto by written notice to the Administrative Agent within five Business Days after having received notice thereof;

(ii) the Administrative Agent; and

(iii) each Fronted LC Issuing Bank;

provided, further, that each such partial assignment pursuant to this Section 8.1A shall be in an aggregate amount of not less than $5,000,000 (or such lesser amount as may be agreed to by the Borrower (unless an Event of Default has occurred and is continuing) and the Administrative Agent or as shall constitute the aggregate amount of the Commitment, Loans and interests in Letters of Credit of the assigning Lender).

B. Requirements. The assigning Lender and the assignee thereof shall execute and deliver to the Administrative Agent an Assignment Agreement, together with (i) a processing and recordation fee of $3,500 (paid by the assigning Lender or the assignee), and (ii) such forms, certificates or other evidence, if any, with respect to United States federal income tax withholding matters as the assignee under such Assignment Agreement may be required to deliver to the Administrative Agent pursuant to Section 2.5B(iii) as if such assignee was a Lender pursuant to that Section.

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C. Acceptance and Notice of Assignment. Upon its receipt of a duly executed and completed Assignment Agreement, together with the processing and recordation fee referred to in Section 8.1B (and any form, certificate or other evidence required by this Agreement in connection therewith), the Administrative Agent shall record the information contained in such Assignment Agreement in the Register, shall give prompt notice thereof to the Borrower and shall maintain a copy of such Assignment Agreement.

D. Effect of Assignment. Subject to the terms and conditions of this Section 8.1, as of the “Effective Date” specified in the applicable Assignment Agreement: (i) the assignee thereunder shall have the rights and obligations of a “Lender” hereunder to the extent such rights and obligations hereunder have been assigned to it pursuant to such Assignment Agreement and shall thereafter be a party hereto and a “Lender” for all purposes hereof; (ii) the assigning Lender thereunder shall, to the extent that rights and obligations hereunder have been assigned thereby pursuant to such Assignment Agreement, relinquish its rights (other than any rights which survive the termination hereof under Section 8.8) and be released from its obligations hereunder (and, in the case of an Assignment Agreement covering all or the remaining portion of an assigning Lender’s rights and obligations hereunder, such Lender shall cease to be a party hereto; provided that, anything contained in any of the Loan Documents to the contrary notwithstanding, such assigning Lender shall continue to be entitled to the benefit of all indemnities hereunder as specified herein with respect to matters arising out of the prior involvement of such assigning Lender as a Lender hereunder); (iii) the Commitments shall be modified to reflect the Commitments of such assignee and of such assigning Lender, if any; and (iv) if any such assignment occurs after the issuance of any Note hereunder, the assigning Lender shall, upon the effectiveness of such assignment or as promptly thereafter as practicable, surrender its applicable Notes to the Administrative Agent for cancellation, and thereupon the Borrower shall issue and deliver a new Note, if so requested by the assignee and/or assigning Lender, to such assignee and/or to such assigning Lender, with appropriate insertions, to reflect the new Commitments and/or outstanding Loans of the assignee and/or the assigning Lender.

E. Certain Other Permitted Assignments. In addition to any other assignment permitted pursuant to this Section 8.1, any Lender may assign and/or pledge all or any portion of its Loans, the other Obligations owed by or to such Lender, and its Notes, if any, to secure obligations of such Lender, to any Person, including any Federal Reserve Bank or any other central bank having authority over such Lender, as collateral security pursuant to Regulation A of the FRB and any operating circular issued by such Federal Reserve Bank or other central bank; provided that no Lender, as between the Borrower and such Lender, shall be relieved of any of its obligations hereunder as a result of any such assignment and/or pledge or substitute any such pledgee or assignee for such Lender as a party hereto.

F. Assignment to a Special Purpose Funding Vehicle. Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle (a “SPFV”), identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower, the option to provide to the Borrower all or any part of any Loan that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPFV to make any Loan, (ii) if an SPFV elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a Loan by an SPFV hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees that no SPFV shall be liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the Granting Lender). In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior

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indebtedness of any SPFV, it will not institute against, or join any other person in instituting against, such SPFV any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any State thereof. In addition, notwithstanding anything to the contrary contained in this Section 8.1G, any SPFV may (i) with notice to, but without the prior written consent of, the Borrower and the Administrative Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to the Granting Lender or to any financial institutions (consented to by the Borrower and Administrative Agent) providing liquidity and/or credit support to or for the account of such SPFV to support the funding or maintenance of Loans and (ii) disclose on a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPFV.

G. Participations. Each Lender shall have the right at any time to sell one or more participations to any Person (other than the Borrower, any of its Subsidiaries or any of its Affiliates) in all or any part of its Commitment, Loans, interests and/or obligations in respect of Letters of Credit or other Obligations. The holder of any such participation, other than an Affiliate of the Lender granting such participation, shall not be entitled to require such Lender to take or omit to take any action hereunder except with respect to any amendment, modification or waiver that would (i) extend the final scheduled maturity of any Loan or Note in which such participant is participating, or reduce the rate or extend the time of payment of interest or fees thereon (except in connection with a waiver of applicability of any post default increase in interest rates) or reduce the principal amount thereof, or increase the amount of the participant’s participation over the amount thereof then in effect (it being understood that a waiver of any Event of Default or of a mandatory reduction in the Commitments shall not constitute a change in the terms of such participation, and that an increase in any Commitment or Loan shall be permitted without the consent of any participant if the participant’s participation is not increased as a result thereof) or (ii) consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement. The Borrower agrees that each participant shall be entitled to the benefits of Sections 2.6C and 2.5 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 8.1A; provided that (a) a participant shall not be entitled to receive any greater payment under Section 2.5 than the applicable Lender would have been entitled to receive with respect to the participation sold to such participant, unless the sale of the participation to such participant is made with the Borrower’s prior written consent and (b) a participant that would be a Non-US Lender if it were a Lender shall not be entitled to the benefits of Section 2.5B unless the Borrower is notified of the participation sold to such participant and such participant agrees, for the benefit of the Borrower, to comply with Section 2.5B as though it were a Lender. To the extent permitted by law, each participant also shall be entitled to the benefits of Section 8.4 as though it were a Lender, provided such Participant agrees to be subject to Section 8.18 as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each participant and the principal amounts and stated interest of each Participant’s interest in the Commitments and the Loans under this Agreement (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any participant or any information relating to a participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under any Loan Document) except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement, notwithstanding any notice to the contrary.

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8.2 Expenses.

Whether or not the transactions contemplated hereby shall be consummated, the Borrower agrees to pay promptly (i) all actual and reasonable costs and out-of-pocket expenses incurred by each Arranger and each Agent in connection with the syndication of this Agreement and the negotiation, preparation and execution of the Loan Documents and the transactions contemplated thereby, including charges for the use of IntraLinks; (ii) all the costs of furnishing all opinions by counsel for the Borrower; (iii) the reasonable fees, out-of-pocket expenses and disbursements of counsel to the Arrangers and the Agents in connection with the negotiation, preparation and execution of the Loan Documents and any other documents or matters requested by the Borrower; (iv) all actual and reasonable costs and out-of-pocket expenses incurred by the Administrative Agent in connection with any consents, amendments, waivers or other modifications of the Loan Documents (including the reasonable fees, out-of-pocket expenses and disbursements of counsel to the Administrative Agent in connection therewith); and (v) after the occurrence of an Event of Default, all costs and expenses, including reasonable attorneys’ fees and costs of settlement, incurred by either Arranger, any Agent or Lender in enforcing any Obligations of or in collecting any payments due from the Borrower hereunder or under the other Loan Documents by reason of such Event of Default (including in connection with the sale of, collection from, or other realization upon any collateral) or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in each case in the nature of a “work-out” or pursuant to any insolvency or bankruptcy cases or proceedings.

8.3 Indemnity.

A. In addition to the payment of expenses pursuant to Section 8.2, whether or not the transactions contemplated hereby shall be consummated, the Borrower agrees to defend (subject to Indemnitees’ selection of counsel), indemnify, pay and hold harmless each of the Arrangers and Agents, each Fronted LC Issuing Bank and each Lender, and the respective partners, officers, directors, employees, agents, attorneys, other advisors and affiliates of each of the Arrangers and each of the Agents, each Fronted LC Issuing Bank and each Lender (collectively called the “Indemnitees”), from and against any and all Indemnified Liabilities (as hereinafter defined); provided that the Borrower shall not have any obligation to any Indemnitee hereunder with respect to any Indemnified Liabilities to the extent such Indemnified Liabilities are determined by a final, non-appealable judgment of a court of competent jurisdiction to (i) arise from the gross negligence, bad faith or willful misconduct of that Indemnitee or any of its Related Indemnitees (as defined below), (ii) result from a material breach by such Indemnitee of its obligations hereunder (as determined pursuant to a claim made by the Borrower) or (iii) arise from any dispute solely among Indemnitees other than any claims against any Agent or Arranger in its capacity, or in fulfilling its role, as an agent, arranger or any similar role under the Loan Documents and other than any claims arising out of any act or omission on the part of the Borrower or its Affiliates. As used herein, (i) “Indemnified Liabilities” means, collectively, any and all liabilities, obligations, losses, damages (including natural resource damages), penalties, actions, judgments, suits, claims (including Environmental Claims), costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel for Indemnitees in connection with any investigative, administrative or judicial proceeding commenced or threatened by any Person, whether or not any such Indemnitee shall be designated as a party or a potential party thereto, and any fees or expenses incurred by Indemnitees in enforcing this indemnity), whether direct, indirect or consequential and whether based on any federal, state or foreign laws, statutes, rules or regulations (including securities and commercial laws, statutes, rules or regulations and Environmental Laws), on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted against any such Indemnitee, in any manner relating to or arising out of this Agreement, any Letter of Credit or the other Loan Documents or the transactions contemplated hereby or thereby (including the Lenders’ agreements to make any Credit Extension hereunder or the use or intended use of

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the proceeds thereof, or any enforcement of any of the Loan Documents, but shall not include Taxes other than any Taxes that represent losses, claims or damages arising from a non-tax claim) and (ii) “Related Indemnitee” of an Indemnitee means (1) any Controlling Person or Controlled Affiliate of such Indemnitee, (2) the respective directors, officers, or employees of such Indemnitee or any of its Controlling Persons or Controlled Affiliates and (3) the respective agents or representatives of such Indemnitee or any of its Controlling Persons or Controlled Affiliates, in the case of this clause (3), acting on behalf of or at the instructions of such Indemnitee, Controlling Person or such Controlled Affiliate. As used in this Section 8.3A, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise, and the terms “Controlling” and “Controlled” have meanings correlative thereto. If any claim or proceeding is commenced as to which any of the Indemnitees proposes to demand indemnification, such Indemnitees shall notify the Borrower with reasonable promptness; provided that any failure to so notify the Borrower shall not relieve the Borrower from its obligations hereunder except to the extent such failure materially and adversely affects the Borrower.

B. To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this Section 8.3 may be unenforceable in whole or in part because they are violative of any law or public policy, the Borrower shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them.

C. To the extent permitted by applicable law, the Borrower and each of its Subsidiaries shall not assert, and each hereby waives, any claim against the Lenders, the Agents, Arrangers and their respective Affiliates, officers, directors, employees, attorneys or agents, (i) for any damages arising from the use by others of information or other materials obtained through telecommunications, electronic or other information transmission systems (including the Internet), or (ii) on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement or any other Loan Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, any Credit Extension hereunder or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and the Borrower and each of its Subsidiaries hereby waives, releases and agrees not to sue upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

8.4 Set-Off.

In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default, each of the Agents and each Lender, and each of their respective Affiliates, is hereby authorized by the Borrower at any time or from time to time, without notice to the Borrower or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, including Indebtedness evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts) and any other Indebtedness at any time held or owing by such Agent or such Lender, or their respective Affiliates, as the case may be, to or for the credit or the account of the Borrower against and on account of any obligations and liabilities of the Borrower to such Agent or such Lender under this Agreement and the other Loan Documents which are then due and payable, including all claims of any nature or description arising out of or connected with this Agreement or any other Loan Document, irrespective of whether or not (i) such Agent or such Lender shall have made any demand hereunder or (ii) said obligations and liabilities, or any of them, may be unmatured. Each Lender agrees that it will promptly notify the Administrative Agent of any exercise of such Lender’s rights pursuant to Section 8.4; provided that no failure of such Lender to deliver such notice shall affect the rights of such Lender hereunder.

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8.5 Amendments and Waivers.

No amendment, modification, termination or waiver of any provision of this Agreement or of any other Loan Document, or consent to any departure by the Borrower therefrom, shall in any event be effective without the written concurrence of the Requisite Lenders; provided that (A) no amendment, modification, termination, waiver or consent shall, without the consent of each Lender directly affected thereby: (i) extend the scheduled final maturity of any Loan or Note, (ii) waive, reduce or postpone any scheduled repayment (but not prepayment), (iii) reduce the rate of interest on any Loan or any fee or other amount payable hereunder, (iv) extend the time for payment of any such interest or fees, (v) reduce the principal amount of any Loan or Note, (vi) amend, modify, terminate or waive any provision of this Section 8.5, (vii) amend, modify or replace the definition of “Requisite Lenders” or “Pro Rata Share”, (viii) amend Section 2.4(c) in a manner that would alter the pro rata sharing of payments required thereby or (ix) consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement; and (B) no such amendment, modification, termination or waiver of any provision of the Loan Documents, or consent to any departure by the Borrower therefrom, shall: (i) increase the Commitment of any Lender over the amount thereof then in effect without the consent of such Lender, (ii) amend, modify, terminate or waive any provision of this Agreement as the same applies to the rights or obligations of any Agent, in each case without the consent of such Agent or (iii) amend, modify, terminate or waive any provision of this Agreement as the same applies to the rights or obligations of any Fronted LC Issuing Bank, in each case without the consent of such Fronted LC Issuing Bank (it being understood that any change to Section 2.12 shall require the consent of the Administrative Agent (such consent not to be unreasonably withheld, conditioned or delayed) and each Fronted LC Issuing Bank). The Administrative Agent may, but shall have no obligation to, with the concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in similar or other circumstances.

8.6 Independence of Covenants.

All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of an Event of Default or a Potential Event of Default if such action is taken or condition exists.

8.7 Notices.

A. Unless otherwise specifically provided herein, all notices or other communications provided for hereunder between the Borrower and any other Person party hereto shall be in writing (including telecopier or Electronic Systems) and mailed, sent by overnight courier, telecopied, e-mailed, or delivered to, (i) in the case of the Borrower or the Administrative Agent, at its address, telecopy number or (if any) email address set forth on the signature pages hereto and (ii) in the case of each Lender and each Fronted LC Issuing Bank, at the address, telecopy number or email address set forth in its Administrative Questionnaire, or, as to each party, at such other address, telecopy number or email address or to such other person as shall be designated by such party in a written notice to all other parties. Any notice, request or demand to or upon the Borrower or any other Person party hereto shall not be effective until received.

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Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through Electronic Systems, to the extent provided in paragraph (B) below, shall be effective as provided in said paragraph (B).

B. Notices and other communications to the Lenders and the Fronted LC Issuing Banks hereunder may be delivered or furnished by using Electronic Systems pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Section 2 unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

C. Any party hereto may change its address (including e-mail address) or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt.

D. Electronic Systems

(i) The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make Communications (as defined below) available to any Fronted LC Issuing Bank and the Lenders by posting the Communications on Debt Domain, Intralinks, Syndtrak, ClearPar or a substantially similar Electronic System.

(ii) Any Electronic System used by the Administrative Agent is provided “as is” and “as available.” The Agent Parties (as defined below) do not warrant the adequacy of such Electronic Systems and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or any Electronic System. In no event shall the Administrative Agent (or any of its Affiliates or their respective directors, officers, employees, agents, advisors and representatives) (collectively, the “Agent Parties”) have any liability to the Borrower, any Lender, any Fronted LC Issuing Bank or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s transmission of Communications through an Electronic System, except to the extent of direct or actual damages as are determined by a final non-appealable judgment of a court of

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competent jurisdiction to have resulted from such Agent Party’s gross negligence or willful misconduct. “Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent, any Lender or any Fronted LC Issuing Bank by means of electronic communications pursuant to this Section, including through an Electronic System.

8.8 Survival of Representations, Warranties and Agreements.

A. All representations, warranties and agreements made herein shall survive the execution and delivery of this Agreement and the making of any Credit Extension hereunder.

B. Notwithstanding anything in this Agreement or implied by law to the contrary, the agreements of the Borrower set forth in Sections 2.5, 2.6C, 8.2 and 8.3 and the agreements of the Lenders set forth in Sections 8.17, 8.18, 9.2C and 9.4 shall survive the payment of the Obligations and the termination of this Agreement.

8.9 Failure or Indulgence Not Waiver; Remedies Cumulative.

No failure or delay on the part of either Arranger, any Agent or any Lender in the exercise of any power, right or privilege hereunder or under any other Loan Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to each Arranger, each Agent and each Lender hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any other Loan Document. Any forbearance or failure to exercise, and any delay in exercising, any right, power or remedy hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such right, power or remedy.

8.10 Marshalling; Payments Set Aside.

No Agent or Lender shall be under any obligation to marshal any assets in favor of the Borrower or any other Person or against or in payment of any or all of the Obligations. To the extent that the Borrower makes a payment or payments to the Administrative Agent or the Lenders (or to the Administrative Agent, on behalf of the Lenders) or the Administrative Agent or the Lenders enforce any security interests or exercises their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.

8.11 Severability.

In case any provision in or obligation under this Agreement or the Notes shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

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8.12 Headings.

Section and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or be given any substantive effect.

8.13 Applicable Law.

THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

8.14 Successors and Assigns.

This Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of the parties hereto and the successors and assigns of the Agents and the Lenders (it being understood that each Lender’s rights of assignment are subject to Section 8.1). The Borrower may not assign or delegate its rights or obligations hereunder or any interest therein without the prior written consent of each Lender. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated hereby, Affiliates of each of the Agents and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

8.15 Consent to Jurisdiction and Service of Process.

ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST THE BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY OBLIGATIONS THEREUNDER, MAY BE BROUGHT IN THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, BOROUGH OF MANHATTAN, AND IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND IN ANY APPELLATE COURT FROM ANY THEREOF. BY EXECUTING AND DELIVERING THIS AGREEMENT, THE BORROWER, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY:

(I) ACCEPTS GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS;

(II) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS;

(III) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE BORROWER AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 8.7;

(IV) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (III) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE BORROWER IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT;

(V) AGREES THAT EACH AGENT AND EACH LENDER RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST THE BORROWER IN THE COURTS OF ANY OTHER JURISDICTION; AND

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(VI) AGREES THAT THE PROVISIONS OF THIS SECTION 8.15 RELATING TO JURISDICTION AND VENUE SHALL BE BINDING AND ENFORCEABLE TO THE FULLEST EXTENT PERMISSIBLE UNDER NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1402 OR OTHERWISE.

8.16 Waiver of Jury Trial.

EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. The scope of this waiver is intended to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this transaction, including contract claims, tort claims, breach of duty claims and all other common law and statutory claims. Each party hereto acknowledges that this waiver is a material inducement to enter into a business relationship, that each has already relied on this waiver in entering into this Agreement, and that each will continue to rely on this waiver in their related future dealings. Each party hereto further warrants and represents that it has reviewed this waiver with its legal counsel and that it knowingly and voluntarily waives its jury trial rights following consultation with legal counsel. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 8.16 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER. In the event of litigation, this Agreement may be filed as a written consent to a trial by the court.

8.17 Confidentiality.

Each Lender shall hold all non-public information received by it regarding the Borrower and its Subsidiaries and their businesses in accordance with such Lender’s customary procedures for handling confidential information of this nature and in accordance with safe and sound banking practices, it being understood and agreed by the Borrower that, in any event, each Lender may make disclosures (i) to Affiliates of such Lender and its and their respective agents and advisors (and to other persons authorized by a Lender to organize, present or disseminate such information in connection with disclosures otherwise made in accordance with this Section 8.17) (it being understood that each such person to which such disclosure is made will be informed of the confidential nature of such information and instructed to keep such information confidential; provided that such Lender shall be responsible for any breach of confidentiality by such person); (ii) reasonably required by any bona fide or potential assignee, transferee or participant in connection with the contemplated assignment, transfer or participation by any Lender of its Loans or any interest therein or by any direct or indirect contractual counterparties (or professional advisors thereto) to any swap or derivative transaction relating to the Borrower and its obligations; provided that, prior to any disclosure, such assignees, transferees, participants, counterparties and advisors are informed of and agree to be bound by either the provisions of this Section 8.17 or other provisions at least as restrictive as this Section 8.17; (iii) to any rating agency when required by it; provided that, prior to any disclosure, such rating agency shall undertake in writing to preserve the confidentiality of any confidential information relating to the Borrower or its Subsidiaries received by it

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from any of the Agents or any Lender; (iv) required or requested by any governmental agency or representative thereof or by the NAIC or pursuant to legal process; provided that unless specifically prohibited by applicable law or court order, each Lender shall make reasonable efforts to notify the Borrower of any request by any governmental agency or representative thereof (other than any such request in connection with any examination of the financial condition or other routine examination of such Lender by such governmental agency) for disclosure of any such non-public information prior to disclosure of such information; and (v) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder; and provided, further, that in no event shall any Lender be obligated or required to return any materials furnished by the Borrower or any of its Subsidiaries.

EACH LENDER ACKNOWLEDGES THAT THE NON-PUBLIC INFORMATION DESCRIBED IN THE IMMEDIATELY PRECEDING PARAGRAPH FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

ALL SUCH INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES. ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.

8.18 Ratable Sharing.

The Lenders hereby agree among themselves that if any of them shall, whether by voluntary payment (other than a voluntary prepayment of Loans made and applied in accordance with the terms hereof), through the exercise of any right of set-off or banker’s lien, by counterclaim or cross action or by the enforcement of any right under the Loan Documents or otherwise, or as adequate protection of a deposit treated as cash collateral under the Bankruptcy Code, receive payment or reduction of a proportion of the aggregate amount of principal, interest, amounts payable in respect of facility fees or commitment fees and other amounts then due and owing to such Lender hereunder or under the other Loan Documents (collectively, the “Aggregate Amounts Due” to such Lender), which is greater than the proportion received by any other Lender in respect to of the Aggregate Amounts Due to such other Lender, then the Lender receiving such proportionately greater payment shall (i) notify the Administrative Agent and each other Lender of the receipt of such payment and (ii) apply a portion of such payment to purchase participations (which it shall be deemed to have purchased from each seller of a participation simultaneously upon the receipt by such seller of its portion of such payment) in the Aggregate Amounts Due to the other Lenders so that all such recoveries of Aggregate Amounts Due shall be shared by all Lenders in proportion to the Aggregate Amounts Due to them; provided that, if all or part of such proportionately greater payment received by such purchasing Lender is thereafter recovered from such Lender upon the bankruptcy or reorganization of the Borrower or otherwise, those purchases shall be

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rescinded and the purchase prices paid for such participations shall be returned to such purchasing Lender ratably to the extent of such recovery, but without interest. The Borrower and each of its Subsidiaries expressly consents to the foregoing arrangement and agrees that any holder of a participation so purchased may exercise any and all rights of banker’s lien, set-off or counterclaim with respect to any and all monies owing by the Borrower or any of its Subsidiaries to that holder with respect thereto as fully as if that holder were owed the amount of the participation held by that holder.

8.19 Counterparts; Integration; Effectiveness; Electronic Execution.

This Agreement and any amendments, waivers, consents or supplements hereto or in connection herewith may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 3.1, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy, e-mailed .pdf or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

8.20 Obligations Several; Independent Nature of Lenders’ Rights.

The obligations of the Lenders hereunder are several and no Lender shall be responsible for the obligations or Commitment of any other Lender hereunder. Nothing contained herein or in any other Loan Document, and no action taken by any of the Lenders pursuant hereto or thereto, shall be deemed to constitute any of the Lenders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and each Lender shall be entitled to protect and enforce its rights arising hereunder and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose.

8.21 Usury Savings Clause.

Notwithstanding any other provision herein, the aggregate interest rate charged with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under applicable law shall not exceed the Highest Lawful Rate. As used herein, “Highest Lawful Rate” means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under the laws applicable to any Lender which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws now allow. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time exceeds the

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Highest Lawful Rate, the outstanding amount of the Loans made hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Loans made hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by law, the Borrower shall pay to the Administrative Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the foregoing, it is the intention of the Lenders and the Borrower to conform strictly to any applicable usury laws. Accordingly, if any Lender contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Lender’s option be applied to the outstanding amount of the Loans made hereunder or be refunded to the Borrower.

8.22 USA PATRIOT Act.

Each Lender hereby notifies the Borrower that pursuant to the requirements of the Patriot Act, such Lender may be required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Patriot Act.

8.23 No Advisory or Fiduciary Relationships.

In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees that: (i) (a) the arranging and other services regarding this Agreement provided by the Administrative Agent, the Lenders and the Arrangers are arm’s-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Administrative Agent, the Lenders and the Arrangers, on the other hand, (b) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate and (c) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (a) the Administrative Agent, the Lenders and the Arrangers each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates or any other Person and (b) none of the Administrative Agent, the Lenders or the Arrangers has any obligation to any of the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (c) the Administrative Agent, the Lenders and the Arrangers and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and none of the Administrative Agent, the Lenders or the Arrangers has any obligation to disclose any of such interests to any of the Borrower or its Affiliates.

SECTION 9. AGENTS

9.1 Appointment.

JPMCB is hereby appointed by each Lender as the Administrative Agent hereunder and under the other Loan Documents and each Lender hereby authorizes the Administrative Agent to act as its contractual representative in accordance with the terms of this Agreement and the other Loan Documents. Each Agent hereby agrees to act upon the express conditions contained in this Agreement and the other

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Loan Documents, as applicable. The provisions of this Section 9 are solely for the benefit of the Agents and the Lenders, and the Borrower shall have no rights as a third party beneficiary of any of the provisions thereof. In performing its functions and duties under this Agreement, each of the Agents shall act solely as an agent of the Lenders and does not assume and shall not be deemed to have assumed any obligation towards or relationship of agency or trust with or for the Borrower or any of its Subsidiaries.

9.2 Powers and Duties; General Immunity.

A. Powers; Duties Specified. Each Lender irrevocably authorizes each Agent to take such action on such Lender’s behalf and to exercise such powers, rights and remedies hereunder and under the other Loan Documents as are specifically delegated or granted to such Agent by the terms hereof and thereof, together with such powers, rights and remedies as are reasonably incidental thereto. Each Agent shall have only those duties and responsibilities that are expressly specified in this Agreement and the other Loan Documents. Each Agent may exercise such powers, rights and remedies and perform such duties by or through its agents, employees and shall not be answerable to the Lenders, except as to money or securities received by it or its authorized agents, for the default or misconduct of any such agent, employee or attorney-in-fact selected by it with reasonable care. Each Agent shall be entitled to advice of counsel concerning the contractual arrangement between such Agent and the Lenders and all matters pertaining to such Agent’s duties hereunder and under any other Loan Document. No Agent shall have, by reason of this Agreement or any of the other Loan Documents, a fiduciary relationship in respect of any Lender; and nothing in this Agreement or any of the other Loan Documents, expressed or implied, is intended to or shall be so construed as to impose upon any Agent any obligations in respect of this Agreement or any of the other Loan Documents except as expressly set forth herein or therein. In its capacity as the Lenders’ contractual representative, the Administrative Agent is acting as an independent contractor, the rights and duties of which are limited to those expressly set forth in this Agreement and the other Loan Documents. Each of the Lenders hereby agrees to assert no claim against any Agent on any agency theory or any other theory of liability for breach of fiduciary duty, all of which claims each Lender hereby waives.

B. No Responsibility for Certain Matters. No Agent shall be responsible to any Lender for the execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency of this Agreement or any other Loan Document or any other document or instrument furnished in connection herewith or therewith, or for any representations, warranties, recitals or statements made herein or therein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or made by any Agent to the Lenders or by or on behalf of the Borrower to any Agent or any Lender in connection with the Loan Documents and the transactions contemplated thereby or for the financial condition or business affairs of the Borrower or any other Person liable for the payment of any Obligations or any Subsidiary or Affiliate of the Borrower or any such Person, nor shall any Agent be required to ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained in any of the Loan Documents or as to the use of the proceeds of the Loans or Letters of Credit or as to the existence or possible existence of any Event of Default or Potential Event of Default or to make disclosures with respect to the foregoing. Anything contained in this Agreement to the contrary notwithstanding, the Administrative Agent shall not have any liability arising from confirmations of the amount of outstanding Loans or the component amounts thereof.

C. Exculpatory Provisions. No Agent nor any of its officers, partners, directors, employees or agents shall be liable to the Lenders for any action taken or omitted by any Agent under or in connection with any of the Loan Documents except to the extent determined in a final non-appealable judgment by a court of competent jurisdiction to have arisen from such Agent’s gross negligence or willful misconduct. Each Agent shall be entitled to refrain from any act or the taking of any action

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(including the failure to take an action) in connection with this Agreement or any of the other Loan Documents or from the exercise of any power, discretion or authority vested in it hereunder or thereunder unless and until such Agent shall have received written instructions in respect thereof from the Requisite Lenders (or such other number of Lenders as may be required to give such instructions under Section 8.5) and, upon receipt of such instructions from the Requisite Lenders (or such other Lenders, as the case may be), such Agent shall be entitled to act or (where so instructed) refrain from acting, or to exercise such power, discretion or authority, in accordance with such instructions. Without prejudice to the generality of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected in relying, upon any communication, instrument or document believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be protected in relying on opinions and judgments of attorneys (who may be attorneys for the Borrower and its Subsidiaries or employees of any Agent), accountants, experts and other professional advisors selected by it; and (ii) no Lender shall have any right of action whatsoever against any Agent as a result of such Agent acting or (where so instructed) refraining from acting under this Agreement or any of the other Loan Documents in accordance with the instructions of the Requisite Lenders (or such other number of Lenders as may be required to give such instructions under Section 8.5).

D. Administrative Agent Entitled to Act as Lender. The agency hereby created shall in no way impair or affect any of the rights and powers of, or impose any duties or obligations upon, any Agent in its individual capacity as a Lender hereunder. With respect to its participation in the Loans and Letters of Credit, each Agent shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were not performing the duties and functions delegated to it hereunder, and the term “Lender” shall, unless the context clearly otherwise indicates, include each Agent in its individual capacity. Any Agent and its Affiliates may accept deposits from, lend money to, own Securities of, and generally engage in any kind of banking, trust, financial advisory or other business with the Borrower or any of its Affiliates as if it were not performing the duties specified herein, and may accept fees and other consideration from the Borrower for services in connection with this Agreement and otherwise without having to account for the same to the Lenders.

E. Syndication Agent and Co-Documentation Agents. Notwithstanding anything herein to the contrary, the Arrangers, the Syndication Agent and the Co-Documentation Agents named on the cover page of this Agreement shall not have any duties or liabilities under this Agreement, except in their capacity, if any, as a Lenders or as otherwise expressly set forth in this Agreement. Without limiting the foregoing, no such Person shall have or be deemed to have a fiduciary relationship with any other Lender.

9.3 Representations and Warranties; No Responsibility For Appraisal of Creditworthiness.

Each Lender represents and warrants that it has made its own independent investigation of the financial condition and affairs of the Borrower and its Subsidiaries in connection with the making of the Loans and issuance of the Letters of Credit hereunder and that it has made and shall continue to make its own appraisal of the creditworthiness of the Borrower and its Subsidiaries. No Agent shall have any duty or responsibility, either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf of the Lenders or to provide any Lender with any credit or other information with respect thereto, whether coming into its possession before the making of any Credit Extension hereunder or at any time or times thereafter, and no Agent shall have any responsibility with respect to the accuracy of or the completeness of any information provided to the Lenders.

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9.4 Right to Indemnity.

Each Lender, in proportion to its Pro Rata Share, severally agrees to indemnify each Agent and each Fronted LC Issuing Bank, to the extent that such Agent or such Fronted LC Issuing Bank shall not have been reimbursed by the Borrower, for and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including counsel fees and disbursements) or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against such Agent or such Fronted LC Issuing Bank in exercising its powers, rights and remedies or performing its duties hereunder or under the other Loan Documents or otherwise in its capacity as such Agent or as a Fronted LC Issuing Bank in any way relating to or arising out of this Agreement or the other Loan Documents (including for any such amounts incurred by or asserted against such Agent or such Fronted LC Issuing Bank in connection with any dispute between such Agent or such Fronted LC Issuing Bank and any Lender or between two or more Lenders); provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements to the extent any of the foregoing is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from such Agent’s or such Fronted LC Issuing Bank’s gross negligence or willful misconduct. If any indemnity furnished to any Agent or any Fronted LC Issuing Bank for any purpose shall, in the opinion of such Agent or such Fronted LC Issuing Bank, be insufficient or become impaired, such Agent or such Fronted LC Issuing Bank may call for additional indemnity and cease, or not commence, to do the acts indemnified against until such additional indemnity is furnished.

9.5 Successor Administrative Agent.

The Administrative Agent may resign at any time by giving 30 days’ prior written notice thereof to the Lenders and the Borrower, and the Administrative Agent may be removed at any time with or without cause by an instrument or concurrent instruments in writing delivered to the Borrower and the Administrative Agent and signed by the Requisite Lenders. Upon any such notice of resignation or any such removal, the Requisite Lenders shall have the right to select a successor Administrative Agent, with the consent of the Borrower (which consent shall not be unreasonably withheld or delayed); provided that the Borrower’s consent shall not be required for the Requisite Lenders to appoint any Lender as the Administrative Agent or at any time that an Event of Default shall have occurred and be continuing. Upon the acceptance of any appointment as the Administrative Agent hereunder by a successor Administrative Agent, that successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Administrative Agent and the retiring or removed Administrative Agent shall be discharged from its duties and obligations under this Agreement. After any retiring or removed Administrative Agent’s resignation or removal hereunder as the Administrative Agent, the provisions of this Section 9 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent under this Agreement.

9.6 Acknowledgment of Potential Related Transactions.

The Borrower hereby acknowledges its understanding that each of the Arrangers, each of the Agents and each of the Lenders may from time to time effect transactions (for its own account or the account of customers), and hold positions in loans or options on loans that may be the subject of this arrangement. In addition, certain Affiliates of the Lenders are full service securities firms and as such may from time to time effect transactions (for their own account or the account of customers), and hold positions, in loans or options on loans or securities or options on securities that may be the subject of this arrangement. In addition, each of the Arrangers, each of the Agents and each of the Lenders may employ the services of its affiliates in providing certain services hereunder and may exchange with such affiliates information concerning the Borrower and other companies that may be the subject of this arrangement.

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9.7 Non-Receipt of Funds by the Administrative Agent.

Unless the Borrower or a Lender, as the case may be, notifies the Administrative Agent prior to the date on which it is scheduled to make payment to the Administrative Agent of (i) in the case of a Lender, the proceeds of a Loan or (ii) in the case of the Borrower, a payment of principal, interest or fees to the Administrative Agent for the account of the Lenders, that it does not intend to make such payment, the Administrative Agent may assume that such payment has been made. The Administrative Agent may, but shall not be obligated to, make the amount of such payment available to the intended recipient in reliance upon such assumption. If such Lender or the Borrower, as the case may be, has not in fact made such payment to the Administrative Agent, the recipient of such payment shall, on demand by the Administrative Agent, repay to the Administrative Agent the amount so made available together with interest thereon in respect of each day during the period commencing on the date such amount was so made available by the Administrative Agent until the date the Administrative Agent recovers such amount at a rate per annum equal to (x) in the case of payment by a Lender, the Federal Funds Effective Rate for such day for the first three days and, thereafter, the interest rate applicable to the relevant Loan or (y) in the case of payment by the Borrower, the interest rate applicable to the relevant Loan.

9.8 Withholding Tax.

To the extent required by any applicable law, the Administrative Agent may withhold from any payment to any Lender an amount equivalent to any applicable income, stamp or other taxes, imposts, duties, charges, or fees imposed, levied, collected or assessed by any Governmental Authority. Without limiting or expanding the provisions of Section 2.5, each Lender shall indemnify and hold harmless the Administrative Agent against, and shall make payable in respect thereof within 10 days after written demand therefor, any and all Taxes and any and all related losses, claims, liabilities and expenses (including, without limitation, fees, charges and disbursements of any counsel for the Administrative Agent) incurred by or asserted against the Administrative Agent by the U.S. Internal Revenue Service or any other Governmental Authority as a result of the failure of the Administrative Agent to properly withhold any amounts from payments to or for the account of such Lender for any reason (including, without limitation, because the appropriate form was not delivered or not properly executed, or because such Lender failed to notify the Administrative Agent of a change in circumstance that rendered the exemption from, or reduction of such required withholding ineffective). A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other instrument or document furnished pursuant hereto against any amount due the Administrative Agent under this Section 9.8. The agreements in this Section 9.8 shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all other obligations.

[Remainder of page intentionally left blank]

- 77 -

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

BORROWER ASSURANT, INC. (d/b/a Assurant Group)
By:	/s/ Christopher Pagano
	Name: Christopher Pagano
	Title:   Executive Vice President, Treasurer and Chief Financial Officer

U.S. Federal Tax Identification No.: 39-1126612 Notice Address: Assurant, Inc. One Chase Manhattan Plaza, 41st Floor New York, NY 10005
Attention:	Stephen Gauster
	Senior Vice President and Chief
	Corporate Counsel
Telephone:	(212) 859-7025
Telecopy:	(212) 859-7034

[Signature Page to Credit Agreement]

LENDERS JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent
By:	/s/ Melvin Jackson
	Name: Melvin Jackson
	Title:   Director
Funding and Payment Office: JPMorgan Chase Bank, N.A. 500 Stanton Christiana Road, Floor 3, Ops 2, Newark, Delaware 19713 Attention of Loan and Agency Services Telephone: 302-634-1156 Telecopy: 302-634-8459 Notice Address: JPMorgan Chase Bank, N.A. 500 Stanton Christiana Road, Floor 3, Ops 2, Newark, Delaware 19713 Attention of Loan and Agency Services Telephone: 302-634-1156 Telecopy: 302-634-8459 with a copy to: JPMorgan Chase Bank, N.A. 383 Madison Avenue New York, New York 10179 Attention of Zainab Aslam Telephone: 212-270-5676 Telecopy: 646-328-3421

[SIGNATURE PAGE TO CREDIT AGREEMENT]

WELLS FARGO BANK, NATIONAL ASSOCIATION, individually as a Lender and as Syndication Agent
By:	/s/ Thomas W. Doddridge
	Name: Thomas W. Doddridge
	Title:   Managing Director

[SIGNATURE PAGE TO CREDIT AGREEMENT]

BMO HARRIS BANK N.A., as a Lender
By:	/s/ David C. Devan
	Name: David C. Devan
	Title: SVP

[SIGNATURE PAGE TO CREDIT AGREEMENT]

KEYBANK NATIONAL ASSOCIATION, as a Lender
By:	/s/ James Cribbet
	Name: James Cribbet
	Title: Senior Vice President

[SIGNATURE PAGE TO CREDIT AGREEMENT]

U.S. BANK NATIONAL ASSOCIATION, as a Lender
By:	/s/ Inna Kotsubey
	Name: Inna Kotsubey
	Title: Vice President

[SIGNATURE PAGE TO CREDIT AGREEMENT]

THE BANK OF NOVA SCOTIA, as a Lender
By:	/s/ Thane Rattew
	Name: Thane Rattew
	Title: Managing Director & Execution Head

[SIGNATURE PAGE TO CREDIT AGREEMENT]

BARCLAYS BANK PLC, as a Lender
By:	/s/ Alicia Borys
	Name: Alicia Borys
	Title: Vice President

[SIGNATURE PAGE TO CREDIT AGREEMENT]

GOLDMAN SACHS BANK USA, as a Lender
By:	/s/ Mark Walton
	Name: Mark Walton Title: Authorized Signatory

[SIGNATURE PAGE TO CREDIT AGREEMENT]

LLOYDS BANK, plc, as a Lender
By:	/s/ Stephen Giacolone
	Name: Stephen Giacolone G011 Title: Assistant Vice President
By:	/s/ Dennis McClellan
	Name: Dennis McClellan M040 Title: Assistant Vice President

[SIGNATURE PAGE TO CREDIT AGREEMENT]

UMB BANK, N.A., as a Lender
By:	/s/ David A Proffitt
	Name: David A. Proffitt Title: SVP

[SIGNATURE PAGE TO CREDIT AGREEMENT]

SCHEDULE 1.1

Pricing Schedule

The Applicable Margin for LIBOR Loans, the Applicable Margin for Base Rate Loans and the Commitment Fee Rate shall be determined based on the applicable Performance Level (as defined below).

Performance Level	Level I			Level II			Level III			Level IV			Level V
Applicable Margin for LIBOR Loans		1.00	%		1.25	%		1.375	%		1.50	%		1.875	%
Applicable Margin for Base Rate Loans		0.00	%		0.25	%		0.375	%		0.50	%		0.875	%
Commitment Fee Rate		0.125	%		0.15	%		0.175	%		0.225	%		0.30	%

“Performance Level” means Performance Level I, Performance Level II, Performance Level III, Performance Level IV, Performance Level V or Performance Level VI, as identified by reference to the public debt rating of the Borrower in effect on such date as set forth in the following chart:

Performance Level	Public Debt Rating
Level I	Long Term Senior Unsecured Debt rated greater than or equal to A by S&P or A2 by Moody’s
Level II	Long Term Senior Unsecured Debt rated greater than or equal to A- by S&P or A3 by Moody’s, but less than A by S&P or A2 by Moody’s
Level III	Long Term Senior Unsecured Debt rated greater than or equal to BBB+ by S&P or Baa1 by Moody’s, but less than A- by S&P or A3 by Moody’s
Level IV	Long Term Senior Unsecured Debt rated greater than or equal to BBB by S&P or Baa2 by Moody’s, but less than BBB+ by S&P or Baa1 by Moody’s
Level V	Long Term Senior Unsecured Debt rated less than or equal to BBB- by S&P or Baa3 by Moody’s, and at all other times (including if such ratings are not available from both S&P and Moody’s)

For purposes of this definition, the Performance Level shall be determined by the applicable public debt rating for the Borrower as follows: (i) the public debt rating shall be determined by the then-current rating announced by either S&P or Moody’s, as the case may be, for any class of non-credit-enhanced long-term senior unsecured debt issued by the Borrower; (ii) if only one of S&P and Moody’s shall have in effect such a public debt rating, the Performance Level will be Level V (except as a result of either S&P or Moody’s, as the case may be, ceasing to be in the business of issuing public debt ratings, in which case the Performance Level shall be determined by reference to the available rating); (iii) if neither S&P nor Moody’s shall have in effect such a public debt rating, the applicable Performance Level will be Level V; (iv) if such public debt ratings established by S&P and Moody’s shall fall within different levels, the public debt rating will be determined by the higher of the two ratings; provided that in the

event that the lower of such public debt ratings is more than one level below the higher of such public debt ratings, the public debt rating will be determined based upon the level that is one level above the lower of such public debt ratings; (v) if any such public debt rating established by S&P or Moody’s shall be changed, such change shall be effective as of the date on which such change is first announced publicly by the rating agency making such change; and (vi) if S&P or Moody’s shall change the basis on which such public debt ratings are established, or shall change its respective rating system, the parties hereto shall negotiate in good faith to amend the references to specific ratings in this Schedule to reflect such changed rating system.

SCHEDULE 1.2

(Lenders’ Commitments)

Lender	Commitment ($)
JPMorgan Chase Bank, N.A.	$	49,000,000.00
Wells Fargo Bank National Association	$	49,000,000.00
BMO Harris Bank N.A.	$	44,000,000.00
KeyBank National Association	$	44,000,000.00
U.S. Bank National Association	$	44,000,000.00
The Bank of Nova Scotia	$	35,000,000.00
Barclays Bank PLC	$	35,000,000.00
Goldman Sachs Bank USA	$	35,000,000.00
Lloyds Bank plc	$	35,000,000.00
UMB Bank, N.A.	$	30,000,000.00
TOTAL	$	400,000,000.00

EXHIBIT I

[FORM OF NOTICE OF BORROWING]

NOTICE OF BORROWING

Pursuant to the Credit Agreement dated as of September 16, 2014 (as amended, supplemented or otherwise modified, the “Credit Agreement”; capitalized terms defined therein and not otherwise defined herein being used herein as therein defined) among Assurant, Inc., a Delaware corporation (together with its permitted successors and assigns, the “Borrower”), the Lenders party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), and Wells Fargo Bank, National Association, as syndication agent, this represents the Borrower’s request to borrow as follows:

1.	Date of borrowing:	, 201
2.	Amount of borrowing:	$
3.	Interest rate option:	¨ a.     Base Rate Loan(s)
		¨ b.     LIBOR Loan with an initial Interest Period of [one] [two] [three] [six] month(s)

The proceeds of such Loans are to be deposited in the Borrower’s account at the Funding and Payment Office.

The undersigned officer, on behalf of the Borrower, certifies that:

(i) the representations and warranties contained in the Credit Agreement and in the other Loan Documents (other than, after the Effective Date, the representations and warranties set forth in the last sentence of Section 4.3C and in Section 4.4, Section 4.6A and Section 4.8) are or shall be true, correct and complete in all material respects on and as of the date hereof to the same extent as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true, correct and complete in all material respects on and as of such earlier date; and

(ii) no event has occurred and is continuing or would result from the consummation of the borrowing contemplated hereby that would constitute an Event of Default or a Potential Event of Default.

DATED:                     , 201	ASSURANT, INC. (d/b/a Assurant Group)
	By:
		Name:
		Title:

I-1

EXHIBIT II

[FORM OF CONVERSION/CONTINUATION NOTICE]

CONVERSION/CONTINUATION NOTICE

Pursuant to the Credit Agreement dated as of September 16, 2014 (as amended, supplemented or otherwise modified, the “Credit Agreement”; capitalized terms defined therein and not otherwise defined herein being used herein as therein defined) among Assurant, Inc., a Delaware corporation (together with its permitted successors and assigns, the “Borrower”), the Lenders party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), and Wells Fargo Bank, National Association, as syndication agent, this represents the Borrower’s request to convert or continue Loans as follows:

1. Date of conversion/continuation:                     , 201    

2. Amount of Loans being converted/continued:     $                    

3. Nature of conversion/continuation:

¨ a. Conversion of Base Rate Loans to LIBOR Loans

¨ b. Conversion of LIBOR Loans to Base Rate Loans

¨ c. Continuation of LIBOR Loans as such

4. If Loans are being continued as or converted to LIBOR Loans, the duration of the new Interest Period that commences on the conversion/continuation date: [one] [two] [three] [six] month(s)

In the case of a conversion to or continuation of LIBOR Loans, the undersigned officer, on behalf of the Borrower, certifies that no Event of Default or Potential Event of Default has occurred and is continuing under the Credit Agreement.

DATED:                 , 201	ASSURANT, INC. (d/b/a Assurant Group)
	By:
		Name:
		Title:

II-1

EXHIBIT III

[FORM OF NOTE]

PROMISSORY NOTE

[Date]

FOR VALUE RECEIVED, ASSURANT, INC., a Delaware corporation (together with its permitted successors and assigns, the “Borrower”), promises to pay to [NAME OF LENDER] (the “Payee”) or its registered assigns, on the dates set forth in the Credit Agreement (as defined below), the unpaid principal amount of all advances made by the Payee to the Borrower as Loans under the Credit Agreement.

The Borrower also promises to pay interest on the unpaid principal amount hereof, from the date hereof until paid in full, at the rates and at the times which shall be determined in accordance with the provisions of the Credit Agreement dated as of September 16, 2014 (as amended, supplemented or otherwise modified, the “Credit Agreement”; capitalized terms defined therein and not otherwise defined herein being used herein as therein defined) among the Borrower, the Lenders party thereto (the “Lenders”), JPMorgan Chase Bank, N.A. as administrative agent for the Lenders (“Administrative Agent”), and Wells Fargo Bank, National Association, as syndication agent.

This Note is one of the Borrower’s “Notes” issued pursuant to and entitled to the benefits of the Credit Agreement, to which reference is hereby made for a more complete statement of the terms and conditions under which the Loans evidenced hereby were made and are to be repaid.

All payments of principal and interest in respect of this Note shall be made in lawful money of the United States of America in same day funds at the Funding and Payment Office or at such other place as shall be designated in writing for such purpose in accordance with the terms of the Credit Agreement. Unless and until an Assignment Agreement effecting the assignment or transfer of this Note shall have been accepted by the Administrative Agent and recorded in the Register as provided in Section 8.1 of the Credit Agreement, the Borrower and the Administrative Agent shall be entitled to deem and treat the Payee as the owner and holder of this Note and the Loans evidenced hereby. The Payee hereby agrees, by its acceptance hereof, that before disposing of this Note or any part hereof it will make a notation hereon of all principal payments previously made hereunder and of the date to which interest hereon has been paid; provided that the failure to make a notation of any payment made on this Note shall not limit or otherwise affect the obligations of the Borrower hereunder with respect to payments of principal of or interest on this Note.

This Note is subject to prepayment at the option of the Borrower as provided in the Credit Agreement.

THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF THE BORROWER AND THE PAYEE HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

Upon the occurrence of an Event of Default, the unpaid balance of the principal amount of this Note, together with all accrued and unpaid interest thereon, may become, or may be declared to be, due and payable in the manner, upon the conditions and with the effect provided in the Credit Agreement.

III-1

The terms of this Note are subject to amendment only in the manner provided in the Credit Agreement.

[Signature Page Follows]

III-2

IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed and delivered by its officer thereunto duly authorized as of the date and at the place first written above.

ASSURANT, INC. (d/b/a Assurant Group)
By:
	Name: Title:

III-3

EXHIBIT IV

[FORMS OF U.S. TAX CERTIFICATES]

[See Following

Exhibits IV-1, IV-2, IV-3 and IV-4]

IV-1

EXHIBIT IV-1

U.S. TAX CERTIFICATE

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of September 16, 2014 (as amended, supplemented or otherwise modified, the “Credit Agreement”; capitalized terms defined therein and not otherwise defined herein being used herein as therein defined) among Assurant, Inc., a Delaware corporation (together with its permitted successors and assigns, the “Borrower”), the Lenders party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent for the Lenders, and Wells Fargo Bank, National Association, as syndication agent.

Pursuant to the provisions of Section 2.5B(iii) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Internal Revenue Code.

The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

DATED:                     , 201	[NAME OF LENDER]
	By:
	Name:
	Title:

IV-2

EXHIBIT IV-2

U.S. TAX CERTIFICATE

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of September 16, 2014 (as amended, supplemented or otherwise modified, the “Credit Agreement”; capitalized terms defined therein and not otherwise defined herein being used herein as therein defined) among Assurant, Inc., a Delaware corporation (together with its permitted successors and assigns, the “Borrower”), the Lenders party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent for the Lenders, and Wells Fargo Bank, National Association, as syndication agent.

Pursuant to the provisions of Section 2.5B(iii) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Internal Revenue Code.

The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

DATED:                     , 201	[NAME OF LENDER]
	By:
	Name:
	Title:

IV-3

EXHIBIT IV-3

U.S. TAX CERTIFICATE

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of September 16, 2014 (as amended, supplemented or otherwise modified, the “Credit Agreement”; capitalized terms defined therein and not otherwise defined herein being used herein as therein defined) among Assurant, Inc., a Delaware corporation (together with its permitted successors and assigns, the “Borrower”), the Lenders party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent for the Lenders, and Wells Fargo Bank, National Association, as syndication agent.

Pursuant to the provisions of Section 2.5B(iii) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Internal Revenue Code.

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

DATED:                                                      , 201	[NAME OF LENDER]
	By:
	Name:
	Title:

IV-4

EXHIBIT IV-4

U.S. TAX CERTIFICATE

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of September 16, 2014 (as amended, supplemented or otherwise modified, the “Credit Agreement”; capitalized terms defined therein and not otherwise defined herein being used herein as therein defined) among Assurant, Inc., a Delaware corporation (together with its permitted successors and assigns, the “Borrower”), the Lenders party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent for the Lenders, and Wells Fargo Bank, National Association, as syndication agent.

Pursuant to the provisions of Section 2.5B(iii) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Internal Revenue Code.

The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

DATED:                                                       , 201	[NAME OF LENDER]
	By:
	Name:
	Title:

IV-5

EXHIBIT V

[FORM OF ASSIGNMENT AGREEMENT]

ASSIGNMENT AND ASSUMPTION AGREEMENT

This Assignment and Assumption Agreement (the “Assignment Agreement”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment Agreement as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit, guarantees, and swingline loans included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment Agreement, without representation or warranty by the Assignor.

[Remainder of Page Intentionally Blank]

V-1

1.	Assignor:
2.	Assignee:
		[and is an Affiliate/Approved Fund of [identify Lender]]
3.	Borrower:	Assurant, Inc.
4.	Administrative Agent:	JPMorgan Chase Bank, N.A., as the administrative agent under the Credit Agreement
5.	Credit Agreement:	Credit Agreement dated as of September 16, 2014 among Assurant, Inc., the Lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent for the Lenders, and Wells Fargo Bank, National Association, as syndication agent.
6.	Assigned Interest:

Aggregate Amount of Commitment/Loans for all Lenders	Amount of Commitment/Loans Assigned	Percentage Assigned of Commitment/Loans1
$	$		%
$	$		%
$	$		%

Effective Date:                     , 201     [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire in which the Assignee designates one or more Credit Contacts to whom all syndicate-level information (which may contain material non-public information about the Borrower and its Related Parties or their respective securities) will be made available and who may receive such information in accordance with the Assignee’s compliance procedures and applicable laws, including Federal and state securities laws.

¹  Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

V-2

The terms set forth in this Assignment Agreement are hereby agreed to:

ASSIGNOR
[NAME OF ASSIGNOR]
By:
	Title:

V-3

[Consented to and^*]Accepted:

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

By:
	Title:

[Consented to:^*]

ASSURANT, INC. (d/b/a Assurant Group)

By:
	Title:

^*  If required pursuant to Section 8.1A of the Credit Agreement.

V- 4

Annex 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AGREEMENT

1. Representations and Warranties.

1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment Agreement and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other Loan Document or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of the Credit Agreement or any other Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under the Credit Agreement or any other Loan Document.

1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment Agreement and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement or any other Loan Document, (ii) it satisfies the requirements, if any, specified in the Credit Agreement or any other Loan Document that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement or any other Loan Document as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement or any other Loan Document, together with copies of the most recent financial statements delivered pursuant to Section 4.3 or 5.1 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment Agreement and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Non-US Lender, attached to this Assignment Agreement is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement or any other Loan Document, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement or any other Loan Document, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement or any other Loan Document are required to be performed by it as a Lender.

2. Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.

3. General Provisions. This Assignment Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment Agreement may be executed in any number of counterparts, which together shall constitute one instrument. Acceptance and adoption of the terms of this Assignment and Assumption by the Assignee and the

Annex 1-1

Assignor by Electronic Signature or delivery of an executed counterpart of a signature page of this Assignment and Assumption by any Electronic System shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment Agreement shall be governed by, and construed in accordance with, the law of the State of New York.

Annex 1-2

EXHIBIT VI

[FORM OF CONFIRMING LENDER AGREEMENT]

[            ], 201[    ]

[Name of Confirming Lender]

[Address]

Ladies and Gentlemen:

Reference is hereby made to the Credit Agreement dated as of September 16, 2014 (as amended, supplemented or otherwise modified, the “Credit Agreement”; capitalized terms defined therein and not otherwise defined herein being used herein as therein defined) among Assurant, Inc., a Delaware corporation (together with its permitted successors and assigns, the “Borrower”), the Lenders party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent for the Lenders, and Wells Fargo Bank, National Association, as syndication agent. Terms defined in the Credit Agreement are used herein with the same meanings.

The undersigned (the “Issuing Lender”) is a Lender under the Credit Agreement but is not on the date hereof listed on the most current List of Banks approved by the NAIC. Accordingly, in order to be a “NAIC Approved Bank” for the purposes of the Credit Agreement, the Issuing Lender hereby requests that you (the “Confirming Lender”) be a Confirming Lender with respect to the Issuing Lender for the purposes of the Credit Agreement and each Syndicated Letter of Credit issued thereunder. The Confirming Lender hereby represents that as of the date hereof it is listed on the most current List of Banks approved by the NAIC.

By its signature below, the Confirming Lender undertakes that it will honor the obligations of the Issuing Lender in respect of any draft drawn under and in strict compliance with the terms of any Syndicated Letter of Credit issued under the Credit Agreement as if, and to the extent, the Confirming Lender were the Issuing Lender under the relevant Syndicated Letter of Credit. Notwithstanding the foregoing, the Confirming Lender’s liability under all Syndicated Letters of Credit at any one time issued or continued under the Credit Agreement shall be limited to an amount (the “Liability Limit”) equal to the Issuing Lender’s Pro Rata Share of the Letter of Credit Sublimit under the Credit Agreement in effect on the date hereof (an amount equal to $[            ]), as such Liability Limit may be increased after the date hereof with the prior written consent of the Confirming Lender by reason of an increase in the Commitment of the Issuing Lender and/or the Letter of Credit Sublimit under the Credit Agreement. In addition, the Confirming Lender hereby irrevocably appoints and designates the Administrative Agent as its attorney-in-fact, acting through any duly authorized officer of the Person serving as the Administrative Agent, to execute and deliver, at any time prior to the Commitment Termination Date in effect on the date of this letter agreement, in the name and on behalf of the Confirming Lender, each Syndicated Letter of Credit to be confirmed by the Confirming Lender in accordance herewith and with the Credit Agreement. The Confirming Lender agrees that, promptly upon the request of the Administrative Agent, it will furnish to the Administrative Agent such powers of attorney or other evidence as any beneficiary of any Syndicated Letter of Credit may reasonably request in order to demonstrate that the Administrative Agent has the power to act as attorney-in-fact for the Confirming Lender in connection with the execution and delivery of such Syndicated Letter of Credit.

VI-1

In consideration of the foregoing, the Issuing Lender agrees that if the Confirming Lender shall make any LC Disbursement in respect of any Syndicated Letter of Credit, regardless of the identity of the account party of such Syndicated Letter of Credit, the Issuing Lender shall reimburse the Confirming Lender by paying to the Confirming Lender an amount equal to the amount of the LC Disbursement made by the Confirming Lender, such payment to be made not later than noon, New York City time, on (i) the Business Day that the Issuing Lender receives notice of such LC Disbursement, if such notice is received prior to 10:00 a.m., New York City time, or (ii) the Business Day immediately following the day that the Issuing Lender receives such notice, if such notice is not received prior to such time. The Issuing Lender’s obligations to reimburse the Confirming Lender as provided in the foregoing sentence shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this letter agreement under any and all circumstances whatsoever, and irrespective of any event or circumstance of the type described in Section 2.11B of the Credit Agreement (or of any analogous event or circumstance relating to the undersigned).

If any LC Disbursement is made by the Confirming Lender, then, unless the Issuing Lender shall reimburse the amount of such LC Disbursement to the Confirming Lender in full on the date such LC Disbursement is made by Confirming Lender, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date of reimbursement, at the rate per annum equal to (i) the Federal Funds Effective Rate to but excluding the date three Business Days after such LC Disbursement and (ii) from and including the date three Business Days after such LC Disbursement, 2% plus the Federal Funds Effective Rate.

The Confirming Lender further agrees that it will promptly notify in writing the Issuing Lender, the Administrative Agent and the Borrower if at any time after the date hereof your institution ceases to be a NAIC Approved Bank.

This letter agreement shall be governed by and construed in accordance with the law of the State of New York. This letter agreement is an “agreement” of the type referred to in the definition of “Confirming Lender” in Section 1.1 of the Credit Agreement.

VI-2

Please indicate your acceptance of the foregoing terms and conditions by signing the two enclosed copies of this letter agreement and returning (a) one such signed copy to the undersigned at the address of the Issuing Lender indicated herein and (b) the other such signed copy to the Administrative Agent at JPMorgan Chase Bank, N.A., 500 Stanton Christiana Road, Floor 3, Ops 2, Newark, Delaware 19713, Attention of Loan and Agency Services (Telecopy No. (302) 634-8459; Telephone No. (302) 634-1156), with a copy to JPMorgan Chase Bank, N.A., 383 Madison Avenue, New York, New York 10179, Attention of Zainab Aslam, (Telecopy No. (646) 328-3421; Telephone No. (212) 270-5676).

ISSUING LENDER:
[NAME OF ISSUING LENDER]
By:
	Title:

AGREED AS AFORESAID:
CONFIRMING LENDER:
[NAME OF CONFIRMING LENDER]
By:
	Title:

VI-3

EX-12.1

EXHIBIT 12.1

ASSURANT, INC.

COMPUTATION OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES

(in millions of U.S. dollars except for ratio amounts)

	September 30, 2014		2013		2012		2011		2010		2009
Income before income taxes	$	653.8	$	789.7	$	757.8	$	706.2	$	606.5	$	714.3
Fixed charges		52.2		86.8		70.2		70.2		73.8		74.6
Income as adjusted	$	706.0	$	876.5	$	828.0	$	776.4	$	680.3	$	788.9
Fixed charges:
Interest expense, including discount amortization and preferred stock dividends (1)	$	44.6	$	77.7	$	60.3	$	60.4	$	60.6	$	60.7
Portion of rents representative of an appropriate interest factor		7.6		9.1		9.9		9.8		13.2		13.9
Total fixed charges	$	52.2	$	86.8	$	70.2	$	70.2	$	73.8	$	74.6
Ratio of consolidated earnings to fixed charges		13.52		10.10		11.79		11.06		9.22		10.58

(1) Preferred stock issued is recorded as a liability, thus the corresponding dividend is recorded as interest expense.

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Robert B. Pollock, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Assurant, Inc. for the period ended September 30, 2014;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 4, 2014

/s/ Robert B. Pollock

Robert B. Pollock

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Christopher J. Pagano, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Assurant, Inc. for the period ended September 30, 2014;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 4, 2014

/s/ Christopher J. Pagano

Christopher J. Pagano

Executive Vice President, Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER OF

ASSURANT, INC.

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

§ 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Assurant, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert B. Pollock, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, based on my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 4, 2014

/s/ Robert B. Pollock

Robert B. Pollock

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER OF

ASSURANT, INC.

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

§ 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Assurant, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christopher J. Pagano, Executive Vice President, Chief Financial Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, based on my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 4, 2014

/s/ Christopher J. Pagano

Christopher J. Pagano

Executive Vice President, Chief Financial Officer and Treasurer

XML

Investments (Proceeds from Sales of Available-For-Sale Securities and the Gross Realized Gains and Gross Realized Losses) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Investments [Abstract]
Proceeds from sales	$ 401,627	$ 525,996	$ 1,403,671	$ 2,028,274
Gross realized gains	18,109	9,865	49,696	46,290
Gross realized losses	$ 1,607	$ 12,339	$ 8,174	$ 23,391

XML

Stock Repurchase (Narrative) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended									9 Months Ended
	Sep. 30, 2014	Aug. 31, 2014	Jul. 31, 2014	Jun. 30, 2014	May 31, 2014	Apr. 30, 2014	Mar. 31, 2014	Feb. 28, 2014	Jan. 31, 2014	Sep. 30, 2014	Dec. 31, 2013	Nov. 18, 2013
Stock Repurchase [Abstract]
Outstanding common stock repurchase authorized, value												$ 600,000
Value remaining under total repurchase authorization	588,188									588,188	704,874	752,436
Number of shares repurchased	186,000	386,000	0	283,000	292,000	302,000	0	0	314,600	1,763,600
Amount of shares repurchased										$ 116,686

XML

Debt (Senior Notes) (Details) (USD $)	3 Months Ended		9 Months Ended		0 Months Ended				3 Months Ended		9 Months Ended		0 Months Ended				3 Months Ended		9 Months Ended			9 Months Ended		9 Months Ended		1 Months Ended	9 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Aug. 15, 2014 Senior Notes 2004	Feb. 15, 2014 Senior Notes 2004	Aug. 15, 2013 Senior Notes 2004	Feb. 15, 2013 Senior Notes 2004	Sep. 30, 2014 Senior Notes 2004	Sep. 30, 2013 Senior Notes 2004	Sep. 30, 2014 Senior Notes 2004	Sep. 30, 2013 Senior Notes 2004	Sep. 15, 2014 Senior Notes Senior Notes 2013	Mar. 15, 2014 Senior Notes Senior Notes 2013	Sep. 15, 2013 Senior Notes Senior Notes 2013	Mar. 28, 2013 Senior Notes Senior Notes 2013	Sep. 30, 2014 Senior Notes Senior Notes 2013	Sep. 30, 2013 Senior Notes Senior Notes 2013	Sep. 30, 2014 Senior Notes Senior Notes 2013	Sep. 30, 2013 Senior Notes Senior Notes 2013	Mar. 28, 2013 Senior Notes Senior Notes 2013	Sep. 30, 2014 Senior Notes Senior Notes 2013, First Series	Mar. 28, 2013 Senior Notes Senior Notes 2013, First Series	Sep. 30, 2014 Senior Notes Senior Notes 2013, Second Series	Mar. 28, 2013 Senior Notes Senior Notes 2013, Second Series	Feb. 29, 2004 Senior Notes Senior Notes 2004	Sep. 30, 2014 Senior Notes Senior Notes 2004, First Series	Feb. 29, 2004 Senior Notes Senior Notes 2004, First Series	Sep. 30, 2014 Senior Notes Senior Notes 2004, Second Series	Feb. 29, 2004 Senior Notes Senior Notes 2004, Second Series
Debt Instrument [Line Items]
Senior notes with an aggregate principal amount																					$ 700,000,000		$ 350,000,000		$ 350,000,000	$ 975,000,000		$ 500,000,000		$ 475,000,000
Proceeds from Issuance of Long-term Debt			0	698,093,000												698,093,000										971,537,000
Senior notes unamortized discount																					1,907,000					3,463,000
Senior notes interest rate																							2.50%		4.00%			5.63%		6.75%
Senior notes maturity date																						Mar. 15, 2018		Mar. 15, 2023			Feb. 18, 2014		Feb. 15, 2034
Senior notes discount rate																							0.18%		0.37%			0.11%		0.61%
Senior notes interest expense	13,776,000	20,771,000	44,617,000	57,369,000					8,031,000	14,714,000	27,383,000	44,795,000					5,745,000	5,870,000	17,234,000	11,613,000
Senior notes accrued interest											4,008,000	7,523,000							948,000	948,000
Senior notes interest payment					$ 16,031,000	$ 30,094,000	$ 30,094,000	$ 30,094,000					$ 11,375,000	$ 11,375,000	$ 10,553,000

XML

Earnings Per Common Share (Net Income, Weighted Average Common Shares Used in Calculating Basic Earnings Per Common Share and Diluted EPS) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share Basic And Diluted [Line Items]
Net income	$ 140,297	$ 128,788	$ 421,152	$ 380,091
Deduct dividends paid	(19,449)	(18,833)	(58,382)	(55,777)
Undistributed earnings	$ 120,848	$ 109,955	$ 362,770	$ 324,314
Weighted average shares outstanding used in basic earnings per share (in shares)	72,182,547	75,544,542	72,561,191	77,662,796
Weighted average shares used in diluted earnings per share calculations (in shares)	73,046,704	76,459,791	73,427,362	78,562,001
Distributed earnings - Basic (in dollars per share)	$ 0.27	$ 0.25	$ 0.79	$ 0.71
Undistributed earnings - Basic (in dollars per share)	$ 1.67	$ 1.45	$ 5.01	$ 4.18
Net income - Basic (in dollars per share)	$ 1.94	$ 1.70	$ 5.80	$ 4.89
Distributed earnings - Diluted (in dollars per share)	$ 0.27	$ 0.25	$ 0.79	$ 0.71
Undistributed earnings - Diluted (in dollars per share)	$ 1.65	$ 1.43	$ 4.95	$ 4.13
Net income - Diluted (in dollars per share)	$ 1.92	$ 1.68	$ 5.74	$ 4.84
SARs
Earnings Per Share Basic And Diluted [Line Items]
Incremental common shares (in shares)	0	53,172	0	73,307
PSUs
Earnings Per Share Basic And Diluted [Line Items]
Incremental common shares (in shares)	864,157	859,572	866,171	823,393
ESPPs
Earnings Per Share Basic And Diluted [Line Items]
Incremental common shares (in shares)	0	2,505	0	2,505

XML

Fair Value Disclosures (Change in Balance Sheet Carrying Value Associated with Level 3 Financial Assets and Liabilities Carried at Fair Value) (Details) (Level 3, USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period, net	$ 103,152		$ 190,023		$ 153,465		$ 209,927
Total (losses) gains (realized/unrealized) included in earnings, net	(4,982)	[1]	(632)	[1]	(5,169)	[1]	(3,965)	[1]
Net unrealized (losses) gains included in other comprehensive income	(1,896)	[2]	(1,457)	[2]	2,115	[2]	(6,090)	[2]
Purchases, net	10,076		(1,897)		16,017		37,682
Sales, net	(3,402)		(2,888)		(10,651)		(34,760)
Transfers into Level 3, net	1,515	[3]	3,527	[3]	1,515	[3]	8,524	[3]
Transfers out of Level 3, net	(10,017)	[3]	(15,969)	[3]	(62,846)	[3]	(40,611)	[3]
Balance, end of period, net	94,446		170,707		94,446		170,707
Other assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period, assets	2,268		2,963		2,491		5,886
Total (losses) gains (realized/unrealized) included in earnings, assets	(1,288)	[1]	(217)	[1]	(1,511)	[1]	(3,140)	[1]
Net unrealized (losses) gains included in other comprehensive income, assets	0	[2]	0	[2]	0	[2]	0	[2]
Purchases, assets	0		0		0		0
Sales, assets	0		0		0		0
Transfers into Level 3, assets	0	[3]	0	[3]	0	[3]	0	[3]
Transfers out of Level 3, assets	0	[3]	0	[3]	0	[3]	0	[3]
Balance, end of period, assets	980		2,746		980		2,746
Other liabilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period, liabilities	(23,160)		(1,590)		(20,330)		(2,560)
Total (losses) gains (realized/unrealized) included in earnings, liabilities	(4,940)	[1]	(589)	[1]	(3,770)	[1]	381	[1]
Net unrealized (losses) gains included in other comprehensive income, liabilities	0	[2]	0	[2]	0	[2]	0	[2]
Purchases, liabilities	0		1,897		4,000		1,897
Sales, liabilities	0		0		0		0
Transfers into Level 3, liabilities	0	[3]	0	[3]	0	[3]	0	[3]
Transfers out of Level 3, liabilities	0	[3]	0	[3]	0	[3]	0	[3]
Balance, end of period, liabilities	(28,100)		(4,076)		(28,100)		(4,076)
Other investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period, assets	2,615		10,601		4,171		11,327
Total (losses) gains (realized/unrealized) included in earnings, assets	(437)	[1]	85	[1]	(1,952)	[1]	(813)	[1]
Net unrealized (losses) gains included in other comprehensive income, assets	2	[2]	693	[2]	11	[2]	1,275	[2]
Purchases, assets	439		0		439		8
Sales, assets	(32)		(636)		(82)		(1,054)
Transfers into Level 3, assets	0	[3]	0	[3]	0	[3]	0	[3]
Transfers out of Level 3, assets	0	[3]	0	[3]	0	[3]	0	[3]
Balance, end of period, assets	2,587		10,743		2,587		10,743
Commercial mortgage-backed | Fixed maturity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period, assets	503		683		598		1,774
Total (losses) gains (realized/unrealized) included in earnings, assets	0	[1]	0	[1]	0	[1]	20	[1]
Net unrealized (losses) gains included in other comprehensive income, assets	(5)	[2]	0	[2]	(14)	[2]	(30)	[2]
Purchases, assets	0		0		0		0
Sales, assets	(45)		(42)		(131)		(1,123)
Transfers into Level 3, assets	0	[3]	0	[3]	0	[3]	0	[3]
Transfers out of Level 3, assets	0	[3]	0	[3]	0	[3]	0	[3]
Balance, end of period, assets	453		641	[3]	453		641	[3]
Residential mortgage-backed | Fixed maturity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period, assets			20,326		4,167		8,211
Total (losses) gains (realized/unrealized) included in earnings, assets			(18)	[1]	0	[1]	(31)	[1]
Net unrealized (losses) gains included in other comprehensive income, assets			64	[2]	0	[2]	(1,145)	[2]
Purchases, assets			0		0		29,938
Sales, assets			(583)		0		(1,326)
Transfers into Level 3, assets			0	[3]	0	[3]	0	[3]
Transfers out of Level 3, assets			(9,004)	[3]	(4,167)	[3]	(24,862)	[3]
Balance, end of period, assets	0		10,785		0		10,785
United States Government and government agencies and authorities | Fixed maturity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period, assets			84				4,175
Total (losses) gains (realized/unrealized) included in earnings, assets			0	[1]			0	[1]
Net unrealized (losses) gains included in other comprehensive income, assets			0	[2]			(3)	[2]
Purchases, assets			0				0
Sales, assets			(84)				(4,172)
Transfers into Level 3, assets			0	[3]			0	[3]
Transfers out of Level 3, assets			0	[3]			0	[3]
Balance, end of period, assets			0				0
States, municipalities and political subdivisions | Fixed maturity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period, assets					22,657
Total (losses) gains (realized/unrealized) included in earnings, assets					0	[1]
Net unrealized (losses) gains included in other comprehensive income, assets					0	[2]
Purchases, assets					0
Sales, assets					0
Transfers into Level 3, assets					0	[3]
Transfers out of Level 3, assets					(22,657)	[3]
Balance, end of period, assets	0				0
Foreign governments | Fixed maturity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period, assets			21,032		16,857		23,097
Total (losses) gains (realized/unrealized) included in earnings, assets			(2)	[1]	(2)	[1]	(4)	[1]
Net unrealized (losses) gains included in other comprehensive income, assets			(433)	[2]	18	[2]	(2,496)	[2]
Purchases, assets			0		0		0
Sales, assets			0		0		0
Transfers into Level 3, assets			0	[3]	0	[3]	0	[3]
Transfers out of Level 3, assets			0	[3]	(16,873)	[3]	0	[3]
Balance, end of period, assets	0		20,597		0		20,597
Corporate | Fixed maturity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period, assets	116,827		133,623		115,344		158,003
Total (losses) gains (realized/unrealized) included in earnings, assets	1,684	[1]	109	[1]	1,739	[1]	(390)	[1]
Net unrealized (losses) gains included in other comprehensive income, assets	(1,840)	[2]	(2,070)	[2]	2,286	[2]	(4,000)	[2]
Purchases, assets	9,637		0		19,578		5,325
Sales, assets	(3,325)		(1,543)		(8,608)		(25,045)
Transfers into Level 3, assets	1,515	[3]	0	[3]	1,515	[3]	4,997	[3]
Transfers out of Level 3, assets	(10,017)	[3]	(6,965)	[3]	(17,373)	[3]	(15,736)	[3]
Balance, end of period, assets	114,481		123,154		114,481		123,154
Non-redeemable preferred stocks | Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period, assets	4,099		2,301		7,510		14
Total (losses) gains (realized/unrealized) included in earnings, assets	(1)	[1]	0	[1]	327	[1]	12	[1]
Net unrealized (losses) gains included in other comprehensive income, assets	(53)	[2]	289	[2]	(186)	[2]	309	[2]
Purchases, assets	0		0		0		4,308
Sales, assets	0		0		(1,830)		(2,040)
Transfers into Level 3, assets	0	[3]	3,527	[3]	0	[3]	3,527	[3]
Transfers out of Level 3, assets	0	[3]	0	[3]	(1,776)	[3]	(13)	[3]
Balance, end of period, assets	$ 4,045		$ 6,117		$ 4,045		$ 6,117

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

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

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

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Financial Information by Segment

The following tables summarize selected financial information by segment:

	Three Months Ended September 30, 2014
	Solutions		Specialty Property		Health			Employee Benefits		Corporate & Other			Consolidated
Revenues
Net earned premiums	$	812,512	$	654,889	$	526,705		$	263,703	$	—		$	2,257,809
Net investment income	95,898		24,574		8,312			28,594		4,631			162,009
Net realized gains on investments	—		—		—			—		17,744			17,744
Amortization of deferred gain on disposal of businesses	—		—		—			—		3,645			3,645
Fees and other income	156,807		87,271		10,593			6,305		305			261,281
Total revenues	1,065,217		766,734		545,610			298,602		26,325			2,702,488
Benefits, losses and expenses
Policyholder benefits	257,000		258,344		430,499			177,850		—			1,123,693
Amortization of deferred acquisition   costs and value of business acquired	287,110		90,356		1,511			7,732		—			386,709
Underwriting, general and   administrative expenses	442,087		258,589		123,176			92,586		37,121			953,559
Interest expense	—		—		—			—		13,776			13,776
Total benefits, losses and   expenses	986,197		607,289		555,186			278,168		50,897			2,477,737
Segment income (loss) before   provision (benefit) for income tax	79,020		159,445		(9,576		)	20,434		(24,572		)	224,751
Provision (benefit) for income taxes	27,171		54,716		7,813			7,333		(12,579		)	84,454
Segment income (loss) after tax	$	51,849	$	104,729	$	(17,389	)	$	13,101	$	(11,993	)
Net income													$	140,297

	Three Months Ended September 30, 2013
	Solutions		Specialty Property		Health		Employee Benefits		Corporate & Other			Consolidated
Revenues
Net earned premiums	$	684,973	$	612,165	$	398,000	$	252,293	$	—		$	1,947,431
Net investment income	92,845		23,819		9,168		28,516		4,861			159,209
Net realized losses on investments	—		—		—		—		(3,631		)	(3,631		)
Amortization of deferred gain on   disposal of businesses	—		—		—		—		4,074			4,074
Fees and other income	107,908		29,786		7,630		6,032		211			151,567
Total revenues	885,726		665,770		414,798		286,841		5,515			2,258,650
Benefits, losses and expenses
Policyholder benefits	226,263		228,508		295,534		183,527		—			933,832
Amortization of deferred acquisition   costs and value of business acquired	286,343		79,361		266		6,780		—			372,750
Underwriting, general and   administrative expenses	325,537		181,172		107,086		87,329		36,202			737,326
Interest expense	—		—		—		—		20,771			20,771
Total benefits, losses and   expenses	838,143		489,041		402,886		277,636		56,973			2,064,679
Segment income (loss) before   provision (benefit) for income tax	47,583		176,729		11,912		9,205		(51,458		)	193,971
Provision (benefit) for income taxes	11,374		61,679		5,351		3,056		(16,277		)	65,183
Segment income (loss) after tax	$	36,209	$	115,050	$	6,561	$	6,149	$	(35,181	)
Net income												$	128,788

	Nine Months Ended September 30, 2014
	Solutions		Specialty Property		Health			Employee Benefits		Corporate & Other			Consolidated
Revenues
Net earned premiums	$	2,335,498	$	1,911,589	$	1,454,726		$	788,192	$	—		$	6,490,005
Net investment income	288,146		77,750		27,538			89,649		14,492			497,575
Net realized gains on investments	—		—		—			—		43,582			43,582
Amortization of deferred gain on   disposal of businesses	—		—		—			—		10,949			10,949
Fees and other income	461,268		209,035		27,787			18,332		428			716,850
Total revenues	3,084,912		2,198,374		1,510,051			896,173		69,451			7,758,961
Benefits, losses and expenses
Policyholder benefits	781,908		830,073		1,136,113			533,244		—			3,281,338
Amortization of deferred acquisition   costs and value of business acquired	824,023		249,189		1,759			23,109		—			1,098,080
Underwriting, general and   administrative expenses	1,238,830		708,837		366,585			274,534		92,349			2,681,135
Interest expense	—		—		—			—		44,617			44,617
Total benefits, losses and   expenses	2,844,761		1,788,099		1,504,457			830,887		136,966			7,105,170
Segment income (loss) before   provision (benefit) for income tax	240,151		410,275		5,594			65,286		(67,515		)	653,791
Provision (benefit) for income taxes	79,300		139,495		32,554			23,838		(42,548		)	232,639
Segment income (loss) after tax	$	160,851	$	270,780	$	(26,960	)	$	41,448	$	(24,967	)
Net income													$	421,152
	As of September 30, 2014
Segment Assets:
Segment assets, excluding goodwill	$	14,133,609	$	4,060,535	$	1,053,512		$	2,272,749	$	8,335,906		$	29,856,311
Goodwill													816,818
Total assets													$	30,673,129

	Nine Months Ended September 30, 2013
	Solutions		Specialty Property		Health		Employee Benefits		Corporate & Other			Consolidated
Revenues
Net earned premiums	$	2,056,300	$	1,727,724	$	1,172,775	$	757,494	$	—		$	5,714,293
Net investment income	282,502		74,723		27,861		88,856		15,176			489,118
Net realized gains on investments	—		—		—		—		30,264			30,264
Amortization of deferred gain on   disposal of businesses	—		—		—		—		12,238			12,238
Fees and other income	279,758		82,202		21,061		17,605		500			401,126
Total revenues	2,618,560		1,884,649		1,221,697		863,955		58,178			6,647,039
Benefits, losses and expenses
Policyholder benefits	647,713		649,554		868,307		541,107		1,462			2,708,143
Amortization of deferred acquisition   costs and value of business acquired	851,326		229,686		532		20,454		—			1,101,998
Underwriting, general and   administrative expenses	969,112		520,307		314,085		266,628		98,235			2,168,367
Interest expense	—		—		—		—		57,369			57,369
Total benefits, losses and   expenses	2,468,151		1,399,547		1,182,924		828,189		157,066			6,035,877
Segment income (loss) before   provision (benefit) for income tax	150,409		485,102		38,773		35,766		(98,888		)	611,162
Provision (benefit) for income taxes	47,902		169,288		33,472		12,060		(31,651		)	231,071
Segment income (loss) after tax	$	102,507	$	315,814	$	5,301	$	23,706	$	(67,237	)
Net income												$	380,091
	As of December 31, 2013
Segment Assets:
Segment assets, excluding goodwill	$	13,321,648	$	3,858,314	$	884,077	$	2,298,698	$	8,567,391		$	28,930,128
Goodwill												784,561
Total assets												$	29,714,689

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Retirement and Other Employee Benefits (Components of Net Periodic Benefit Cost) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Qualified Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 7,966		$ 7,832		$ 24,366		$ 26,432
Interest cost	9,521		8,867		27,821		24,017
Expected return on plan assets	(12,427)		(11,036)		(37,127)		(33,186)
Amortization of prior service cost	0		4		0		4
Amortization of net loss (gain)	1,792		3,801		6,342		17,451
Curtailment/settlement charge	0		0		0		0
Net periodic benefit cost	6,852		9,468		21,402		34,718
Non-Qualified Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	1,139	[1]	1,008	[1]	3,139	[1]	3,308	[1]
Interest cost	1,636	[1]	1,480	[1]	4,636	[1]	3,880	[1]
Expected return on plan assets	0	[1]	0	[1]	0	[1]	0	[1]
Amortization of prior service cost	218	[1]	249	[1]	618	[1]	599	[1]
Amortization of net loss (gain)	969	[1]	1,182	[1]	2,819	[1]	4,382	[1]
Curtailment/settlement charge	436	[1]	0		436	[1]	0
Net periodic benefit cost	4,398	[1]	3,919	[1]	11,648	[1]	12,169	[1]
Retirement Health Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	494		581		1,694		2,281
Interest cost	959		911		2,909		2,561
Expected return on plan assets	(766)		(799)		(2,316)		(2,199)
Amortization of prior service cost	(242)		(241)		(692)		(691)
Amortization of net loss (gain)	(208)		0		(308)		0
Curtailment/settlement charge	0		0		0		0
Net periodic benefit cost	$ 237		$ 452		$ 1,287		$ 1,952

[1] The Company’s nonqualified plan is unfunded.

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Subsequent Events

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On October 16, 2014, the Company announced an agreement to sell its general agency business and primary associated insurance carrier, American Reliable Insurance Company ("ARIC") to Global Indemnity Group, Inc., a subsidiary of Global Indemnity plc, for approximately $114,000 in cash. The business is part of the Assurant Specialty Property segment and offers specialty personal lines and agricultural insurance through general and independent agents. This transaction is anticipated to close in the first quarter of 2015. The sale price is subject to adjustment based on GAAP book value of the business from June 30, 2014 until the closing date of the of the transaction. The initial accounting for this disposition is incomplete primarily due to the timing of the sale date and an allocation of an estimated portion of Assurant Specialty Property's goodwill.Thus, an estimateof the amount or range of loss cannot be made. As of September 30, 2014, the business had assets, excluding goodwill, of approximately $400,000 (primarily consisting of fixed maturity securities, premiums and accounts receivable and reinsurance recoverables) and liabilities of approximately $285,000 (primarily consisting of unearned premiums, claims and benefits payable and funds held under reinsurance).

On October 31, 2014, the Company acquired CWI Group, a market leading mobile insurance administrator in France, for approximately €56,000 (U.S.D.$71,000), subject to certain conditions with a possible earnout payment based on future performance. The initial accounting for this acquisition is incomplete due to the timing of the acquisition date, thus the estimated range of outcomes for the contingent consideration and the total amount of other intangible assets and goodwill for Assurant Solutions is not yet available.

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Accumulated Other Comprehensive Income (Components of Accumulated Other Comprehensive Income, Net of Tax) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 764,072	$ 420,508	$ 426,830	$ 830,403
Other comprehensive income (loss) before reclassifications	(115,676)	(39,355)	202,717	(475,817)
Amounts reclassified from accumulated other comprehensive income	11,350	5,153	30,199	31,720
Net current-period other comprehensive (loss) income	(104,326)	(34,202)	232,916	(444,097)
Ending balance	659,746	386,306	659,746	386,306
Foreign currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(18,937)	(27,349)	(38,767)	6,882
Other comprehensive income (loss) before reclassifications	(54,264)	5,578	(34,434)	(28,653)
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Net current-period other comprehensive (loss) income	(54,264)	5,578	(34,434)	(28,653)
Ending balance	(73,201)	(21,771)	(73,201)	(21,771)
Unrealized gains on securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	837,038	593,630	526,071	981,879
Other comprehensive income (loss) before reclassifications	(60,219)	(45,212)	235,940	(449,116)
Amounts reclassified from accumulated other comprehensive income	8,602	1,907	23,410	17,562
Net current-period other comprehensive (loss) income	(51,617)	(43,305)	259,350	(431,554)
Ending balance	785,421	550,325	785,421	550,325
OTTI
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	28,811	25,558	26,427	23,861
Other comprehensive income (loss) before reclassifications	(1,193)	279	1,211	1,952
Amounts reclassified from accumulated other comprehensive income	1,104	0	1,084	24
Net current-period other comprehensive (loss) income	(89)	279	2,295	1,976
Ending balance	28,722	25,837	28,722	25,837
Pension under- funding
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(82,840)	(171,331)	(86,901)	(182,219)
Other comprehensive income (loss) before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive income	1,644	3,246	5,705	14,134
Net current-period other comprehensive (loss) income	1,644	3,246	5,705	14,134
Ending balance	$ (81,196)	$ (168,085)	$ (81,196)	$ (168,085)

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Investments (Duration of Gross Unrealized Losses on Fixed Maturity Securities and Equity Securities) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses on securities, less than 12 months, fair value	$ 59,120	$ 159,910
Gross unrealized losses on securities, less than 12 months, unrealized losses	(802)	(8,210)
Gross unrealized losses on securities, 12 months or more, fair value	31,507	11,807
Gross unrealized losses on securities, 12 months or more, unrealized losses	(1,684)	(1,199)
Gross unrealized losses on securities, fair value, total	90,627	171,717
Gross unrealized losses on securities, unrealized losses, total	(2,486)	(9,409)
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses on securities, less than 12 months, fair value	913,227	2,125,923
Gross unrealized losses on securities, less than 12 months, unrealized losses	(8,223)	(60,281)
Gross unrealized losses on securities, 12 months or more, fair value	398,707	55,856
Gross unrealized losses on securities, 12 months or more, unrealized losses	(9,887)	(2,847)
Gross unrealized losses on securities, fair value, total	1,311,934	2,181,779
Gross unrealized losses on securities, unrealized losses, total	(18,110)	(63,128)
Fixed maturity securities | Corporate
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses on securities, less than 12 months, fair value	720,525	1,412,611
Gross unrealized losses on securities, less than 12 months, unrealized losses	(7,245)	(36,848)
Gross unrealized losses on securities, 12 months or more, fair value	196,815	19,291
Gross unrealized losses on securities, 12 months or more, unrealized losses	(4,525)	(805)
Gross unrealized losses on securities, fair value, total	917,340	1,431,902
Gross unrealized losses on securities, unrealized losses, total	(11,770)	(37,653)
Fixed maturity securities | Residential mortgage-backed
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses on securities, less than 12 months, fair value	104,337	407,808
Gross unrealized losses on securities, less than 12 months, unrealized losses	(379)	(11,667)
Gross unrealized losses on securities, 12 months or more, fair value	124,490	31,498
Gross unrealized losses on securities, 12 months or more, unrealized losses	(3,067)	(1,550)
Gross unrealized losses on securities, fair value, total	228,827	439,306
Gross unrealized losses on securities, unrealized losses, total	(3,446)	(13,217)
Fixed maturity securities | Commercial mortgage-backed
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses on securities, less than 12 months, fair value		5,036
Gross unrealized losses on securities, less than 12 months, unrealized losses		(82)
Gross unrealized losses on securities, 12 months or more, fair value		0
Gross unrealized losses on securities, 12 months or more, unrealized losses		0
Gross unrealized losses on securities, fair value, total		5,036
Gross unrealized losses on securities, unrealized losses, total		(82)
Common Stock | Equity securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses on securities, less than 12 months, fair value	1,078	187
Gross unrealized losses on securities, less than 12 months, unrealized losses	(46)	(10)
Gross unrealized losses on securities, 12 months or more, fair value	193	0
Gross unrealized losses on securities, 12 months or more, unrealized losses	(3)	0
Gross unrealized losses on securities, fair value, total	1,271	187
Gross unrealized losses on securities, unrealized losses, total	(49)	(10)
Non-redeemable preferred stocks | Equity securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses on securities, less than 12 months, fair value	58,042	159,723
Gross unrealized losses on securities, less than 12 months, unrealized losses	(756)	(8,200)
Gross unrealized losses on securities, 12 months or more, fair value	31,314	11,807
Gross unrealized losses on securities, 12 months or more, unrealized losses	(1,681)	(1,199)
Gross unrealized losses on securities, fair value, total	89,356	171,530
Gross unrealized losses on securities, unrealized losses, total	(2,437)	(9,399)
United States government and government agencies and authorities | Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses on securities, less than 12 months, fair value	37,746	52,615
Gross unrealized losses on securities, less than 12 months, unrealized losses	(104)	(1,464)
Gross unrealized losses on securities, 12 months or more, fair value	24,895	3,514
Gross unrealized losses on securities, 12 months or more, unrealized losses	(535)	(424)
Gross unrealized losses on securities, fair value, total	62,641	56,129
Gross unrealized losses on securities, unrealized losses, total	(639)	(1,888)
States, municipalities and political subdivisions | Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses on securities, less than 12 months, fair value	7,080	30,145
Gross unrealized losses on securities, less than 12 months, unrealized losses	(383)	(2,624)
Gross unrealized losses on securities, 12 months or more, fair value	4,565	0
Gross unrealized losses on securities, 12 months or more, unrealized losses	(134)	0
Gross unrealized losses on securities, fair value, total	11,645	30,145
Gross unrealized losses on securities, unrealized losses, total	(517)	(2,624)
Foreign governments | Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses on securities, less than 12 months, fair value	43,539	217,708
Gross unrealized losses on securities, less than 12 months, unrealized losses	(112)	(7,596)
Gross unrealized losses on securities, 12 months or more, fair value	46,480	111
Gross unrealized losses on securities, 12 months or more, unrealized losses	(1,594)	(12)
Gross unrealized losses on securities, fair value, total	90,019	217,819
Gross unrealized losses on securities, unrealized losses, total	(1,706)	(7,608)
Asset-backed | Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses on securities, less than 12 months, fair value	0	0
Gross unrealized losses on securities, less than 12 months, unrealized losses	0	0
Gross unrealized losses on securities, 12 months or more, fair value	1,462	1,442
Gross unrealized losses on securities, 12 months or more, unrealized losses	(32)	(56)
Gross unrealized losses on securities, fair value, total	1,462	1,442
Gross unrealized losses on securities, unrealized losses, total	$ (32)	$ (56)

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Investments (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014 security	Sep. 30, 2013	Sep. 30, 2014 security	Sep. 30, 2013	Dec. 31, 2013 security
Investment [Line Items]
Maximum individual state exposure	0.50%		0.50%
Advance refunded or escrowed-to-maturity securities	$ 275,657		$ 275,657		$ 234,640
Percentage of revenue securities	51.00%		51.00%		53.00%
European investment exposure in fixed maturity and equity securities	1,075,379		1,075,379		1,082,129
Unrealized gain of European investments within corporate fixed maturity and equity securities	108,088		108,088		78,126
Percentage of European investments held in financial industry classification	23.00%		23.00%		25.00%
Percentage of investments in any one European country	5.00%		5.00%		6.00%
Percentage of pound and euro-denominated European securities held to support foreign-denominated liabilities	5.00%		5.00%
Total other-than-temporary impairment losses	0	1,230	69	1,409
Net other-than-temporary impairment losses recognized in earnings	0	1,202	30	1,309
Portion of net (gain) loss recognized in other comprehensive income, before taxes		28	39	100
Percentage of securities representing gross unrealized losses	2.00%		2.00%		3.00%
Percentage of gross unrealized losses in a continuous loss position less than twelve months	44.00%		44.00%		94.00%
Individual securities comprising total gross unrealized losses	477		477		667
Total gross unrealized losses of twelve months or more	1,365		1,365
Total gross unrealized losses of twelve months or more percentage	30.00%		30.00%
Percentage of residential mortgage-backed holdings exposure to sub-prime mortgage collateral	39.00%		39.00%
Outstanding balance of commercial mortgage loans	1,257,906		1,257,906		1,291,514
Percentage of securities received as collateral			102.00%
Collateral held under securities lending	95,977		95,977		95,215
Liability to the borrower for collateral	95,973		95,973		95,206
Number of securities in an unrealized position for less than 12 months	1		1
Minimum
Investment [Line Items]
Outstanding balance of commercial mortgage loans	6		6		9
Maximum
Investment [Line Items]
Percentage of investments in foreign governments fixed maturity securities	3.00%		3.00%		3.00%
Outstanding balance of commercial mortgage loans	$ 15,288		$ 15,288		$ 15,574
Canadian Government/Provincials
Investment [Line Items]
Percentage of investments in foreign governments fixed maturity securities	74.00%		74.00%		70.00%
Governments of Brazil
Investment [Line Items]
Percentage of investments in foreign governments fixed maturity securities	11.00%		11.00%		15.00%
Governments of Germany
Investment [Line Items]
Percentage of investments in foreign governments fixed maturity securities	5.00%		5.00%		6.00%

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Stock Based Compensation (Narrative) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended				9 Months Ended	1 Months Ended				3 Months Ended		9 Months Ended
	Sep. 30, 2014 Restricted Stock Units	Sep. 30, 2013 Restricted Stock Units	Sep. 30, 2014 Restricted Stock Units	Sep. 30, 2013 Restricted Stock Units	Sep. 30, 2014 Performance Share Units	Sep. 30, 2013 Performance Share Units	Sep. 30, 2014 Performance Share Units	Sep. 30, 2013 Performance Share Units	May 31, 2010 Long-Term Equity Incentive Plan	May 31, 2008 Long-Term Equity Incentive Plan	Sep. 30, 2014 Long-Term Equity Incentive Plan Performance Share Units	Jul. 31, 2014 Employee Stock Purchase Plan	Jan. 31, 2014 Employee Stock Purchase Plan	Jul. 31, 2013 Employee Stock Purchase Plan	Jan. 31, 2013 Employee Stock Purchase Plan	Sep. 30, 2014 Employee Stock Purchase Plan	Sep. 30, 2013 Employee Stock Purchase Plan	Sep. 30, 2014 Employee Stock Purchase Plan	Sep. 30, 2013 Employee Stock Purchase Plan	Sep. 30, 2014 Minimum Long-Term Equity Incentive Plan Performance Share Units	Sep. 30, 2014 Maximum Long-Term Equity Incentive Plan Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company's common stock authorized to employees									5,300,000	3,400,000						5,000,000		5,000,000
RSU vesting terms for employees and directors			33.00%
Vesting period (in years)			3 years
Percentage of payout level minimum																				0.00%
Percentage of payout level maximum																					150.00%
Percentage of payout level target											100.00%
Revenues benchmark for performance payout											$ 1,000,000
Number of shares granted	27,347	14,916	358,611	481,134	0	0	380,349	408,808
Compensation expense	6,197	6,936	17,174	19,207	3,460	7,839	17,022	16,688								308	300	893	798
Compensation expenses income tax benefit	2,167	2,425	6,001	6,714	1,206	2,738	5,942	5,832
Weighted average grant date fair value			$ 65.32	$ 44.18			$ 64.93	$ 44.22
Unrecognized compensation cost	19,197		19,197		23,107		23,107
Unrecognized compensation cost expected to be recognized over a weighted-average period (in years)			1 year 1 month 27 days				10 months 15 days
Fair value of shares vested and issued during the period	$ 1,473	$ 982	$ 32,354	$ 20,832
Purchase shares at discount																		10.00%
Common shares issued												65,867	75,709	110,038	107,535
Discounted price of shares issued												$ 58.79	$ 46.36	$ 31.93	$ 31.23

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Income Taxes (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014 Compensation Expenses
Income Tax [Line Items]
One-time tax benefit from conversion of certain U.S. companies with branch operations in Canada to foreign corporate entities			$ 20,753
Provision for income taxes	$ 84,454	$ 65,183	$ 232,639	$ 231,071	$ 5,749

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Fair Value Disclosures (Carrying Value and Fair Value of the Financial Instruments that are not recognized or are not Carried at Fair Value) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans on real estate	$ 1,434,289		$ 1,444,974
Policy loans	48,979		51,678
Total financial assets	1,483,268		1,496,652
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal)	787,947	[1]	808,734	[1]
Funds withheld under reinsurance	78,707		76,778
Debt	1,273,705		1,656,588
Obligations under securities agreements	95,973		95,206
Total financial liabilities	2,236,332		2,637,306
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans on real estate	0		0
Policy loans	48,979		51,678
Total financial assets	48,979		51,678
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal)	0	[1]	0	[1]
Funds withheld under reinsurance	78,707		76,778
Debt	0		0
Obligations under securities agreements	95,973		95,206
Total financial liabilities	174,680		171,984
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans on real estate	0		0
Policy loans	0		0
Total financial assets	0		0
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal)	0	[1]	0	[1]
Funds withheld under reinsurance	0		0
Debt	1,273,705		1,656,588
Obligations under securities agreements	0		0
Total financial liabilities	1,273,705		1,656,588
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans on real estate	1,434,289		1,444,974
Policy loans	0		0
Total financial assets	1,434,289		1,444,974
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal)	787,947	[1]	808,734	[1]
Funds withheld under reinsurance	0		0
Debt	0		0
Obligations under securities agreements	0		0
Total financial liabilities	787,947		808,734
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans on real estate	1,253,424		1,287,032
Policy loans	48,979		51,678
Total financial assets	1,302,403		1,338,710
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal)	766,039	[1]	809,628	[1]
Funds withheld under reinsurance	78,707		76,778
Debt	1,171,005		1,638,118
Obligations under securities agreements	95,973		95,206
Total financial liabilities	$ 2,111,724		$ 2,619,730

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

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Nature of Operations

9 Months Ended

Sep. 30, 2014

Nature Of Operations [Abstract]

Nature Of Operations

Nature of Operations

Assurant, Inc. (the “Company”) is a holding company whose subsidiaries provide specialized insurance products and related services in North America, Latin America, Europe and other select worldwide markets.

The Company is traded on the New York Stock Exchange under the symbol "AIZ".

Through its operating subsidiaries, the Company provides mobile device protection, debt protection administration, credit-related insurance, warranties and service contracts, pre-funded funeral insurance, lender-placed homeowners insurance, property, appraisal, preservation and valuation services, renters insurance and related products, manufactured housing homeowners insurance, individual health and small employer group health insurance, group dental insurance, group disability insurance, and group life insurance.

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Catastrophe Bond Program (Details) (USD $)			0 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jan. 30, 2012 January 30, 2012 Ibis Re II Ltd. Agreement	Sep. 30, 2014 June 26, 2013 Ibis Re II Ltd. Agreement	Jun. 26, 2013 June 26, 2013 Ibis Re II Ltd. Agreement	Jan. 30, 2012 Series 2012-1 Notes	Jun. 26, 2013 Series 2013-1 Notes
Catastrophe Bond Program [Line Items]
Reinsurance coverage for protection against losses			$ 130,000,000		$ 185,000,000
Agreements expire			February 2015	June 2016
Reinsurance coverage by issuing catastrophe bonds						130,000,000	185,000,000
Collateralized hurricane coverage	315,000,000
First event coverage percentage	18.00%
Ceded Losses	$ 0	$ 0

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Investments (Credit Quality Indicators for Commercial Mortgage Loans) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Carrying Value	$ 1,257,906	$ 1,291,514
% of Gross Mortgage Loans	100.00%	100.00%
Debt-Service Coverage Ratio	1.94	1.89
Less valuation allowance	(4,482)	(4,482)
Net commercial mortgage loans	1,253,424	1,287,032
70% and less
Financing Receivable, Recorded Investment [Line Items]
Carrying Value	1,129,193	1,143,200
% of Gross Mortgage Loans	89.80%	88.50%
Debt-Service Coverage Ratio	2.03	1.97
71 – 80%
Financing Receivable, Recorded Investment [Line Items]
Carrying Value	87,488	73,603
% of Gross Mortgage Loans	7.00%	5.70%
Debt-Service Coverage Ratio	1.25	1.44
81 – 95%
Financing Receivable, Recorded Investment [Line Items]
Carrying Value	34,694	58,752
% of Gross Mortgage Loans	2.70%	4.60%
Debt-Service Coverage Ratio	0.97	1.19
Greater than 95%
Financing Receivable, Recorded Investment [Line Items]
Carrying Value	$ 6,531	$ 15,959
% of Gross Mortgage Loans	0.50%	1.20%
Debt-Service Coverage Ratio	0.43	0.87

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2014

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Components of Accumulated Other Comprehensive Income, Net of Tax

The following tables summarize those reclassification adjustments (net of taxes):

	Three Months Ended September 30, 2014
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI			Pension under- funding			Accumulated other comprehensive income
Balance at June 30, 2014	$	(18,937	)	$	837,038		$	28,811		$	(82,840	)	$	764,072
Other comprehensive loss before   reclassifications	(54,264		)	(60,219		)	(1,193		)	—			(115,676		)
Amounts reclassified from accumulated other   comprehensive income	—			8,602			1,104			1,644			11,350
Net current-period other comprehensive (loss)   income	(54,264		)	(51,617		)	(89		)	1,644			(104,326		)
Balance at September 30, 2014	$	(73,201	)	$	785,421		$	28,722		$	(81,196	)	$	659,746
	Three Months Ended September 30, 2013
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI			Pension under- funding			Accumulated other comprehensive income
Balance at June 30, 2013	$	(27,349	)	$	593,630		$	25,558		$	(171,331	)	$	420,508
Other comprehensive income (loss) before   reclassifications	5,578			(45,212		)	279			—			(39,355		)
Amounts reclassified from accumulated other   comprehensive income	—			1,907			—			3,246			5,153
Net current-period other comprehensive income   (loss)	5,578			(43,305		)	279			3,246			(34,202		)
Balance at September 30, 2013	$	(21,771	)	$	550,325		$	25,837		$	(168,085	)	$	386,306
	Nine Months Ended September 30, 2014
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI			Pension under- funding			Accumulated other comprehensive income
Balance at December 31, 2013	$	(38,767	)	$	526,071		$	26,427		$	(86,901	)	$	426,830
Other comprehensive (loss) income before   reclassifications	(34,434		)	235,940			1,211			—			202,717
Amounts reclassified from accumulated other   comprehensive income	—			23,410			1,084			5,705			30,199
Net current-period other comprehensive (loss)   income	(34,434		)	259,350			2,295			5,705			232,916
Balance at September 30, 2014	$	(73,201	)	$	785,421		$	28,722		$	(81,196	)	$	659,746

	Nine Months Ended September 30, 2013
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI		Pension under- funding			Accumulated other comprehensive income
Balance at December 31, 2012	$	6,882		$	981,879		$	23,861	$	(182,219	)	$	830,403
Other comprehensive (loss) income before   reclassifications	(28,653		)	(449,116		)	1,952		—			(475,817		)
Amounts reclassified from accumulated other   comprehensive income	—			17,562			24		14,134			31,720
Net current-period other comprehensive (loss)   income	(28,653		)	(431,554		)	1,976		14,134			(444,097		)
Balance at September 30, 2013	$	(21,771	)	$	550,325		$	25,837	$	(168,085	)	$	386,306

Reclassification out of Accumulated Other Comprehensive Income

The following tables summarize the reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2014 and 2013:

Details about accumulated other comprehensive income components	Amount reclassified from accumulated other comprehensive income						Affected line item in the statement where net income is presented
	Three Months Ended September 30,
	2014			2013
Unrealized gains on securities	$	13,234		$	2,934		Net realized gains on investments, excluding other-than-temporary impairment losses
	(4,632		)	(1,027		)	Provision for income taxes
	$	8,602		$	1,907		Net of tax
OTTI	$	1,697		$	—		Portion of net loss recognized in other comprehensive income, before taxes
	(593		)	—			Provision for income taxes
	$	1,104		$	—		Net of tax
Amortization of pension and   postretirement unrecognized net   periodic benefit cost:
Amortization of prior service cost	$	(24	)	$	12		(1)
Amortization of net loss	2,553			4,983			(1)
	2,529			4,995			Total before tax
	(885		)	(1,749		)	Provision for income taxes
	$	1,644		$	3,246		Net of tax
Total reclassifications for the period	$	11,350		$	5,153		Net of tax

Details about accumulated other comprehensive income components	Amount reclassified from accumulated other comprehensive income						Affected line item in the statement where net income is presented
	Nine Months Ended September 30,
	2014			2013
Unrealized gains on securities	$	36,015		$	27,019		Net realized gains on investments, excluding other-than-temporary impairment losses
	(12,605		)	(9,457		)	Provision for income taxes
	$	23,410		$	17,562		Net of tax
OTTI	$	1,667		$	37		Portion of net loss recognized in other comprehensive income, before taxes
	(583		)	(13		)	Provision for income taxes
	$	1,084		$	24		Net of tax
Amortization of pension and   postretirement unrecognized net   periodic benefit cost:
Amortization of prior service cost	$	(74	)	$	(88	)	(1)
Amortization of net loss	8,853			21,833			(1)
	8,779			21,745			Total before tax
	(3,074		)	(7,611		)	Provision for income taxes
	$	5,705		$	14,134		Net of tax
Total reclassifications for the period	$	30,199		$	31,720		Net of tax

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 12 - Retirement and Other Employee Benefits for additional information.

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Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value for Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013. The amounts presented below for Collateral held/pledged under securities agreements, Other investments, Cash equivalents, Other assets, Assets and Liabilities held in separate accounts and Other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan, American Security Insurance Company Investment Plan, Assurant Deferred Compensation Plan, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of investments in the Assurant Investment Plan, contingent consideration related to a business combination and other derivatives. The fair value amount and the majority of the associated levels presented for Other investments and Assets and Liabilities held in separate accounts are received directly from third parties.

	September 30, 2014
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies   and authorities	$	177,408	$	—		$	177,408		$	—
State, municipalities and political subdivisions	830,367		—			830,367			—
Foreign governments	668,356		705			667,651			—
Asset-backed	5,758		—			5,758			—
Commercial mortgage-backed	58,061		—			57,608			453
Residential mortgage-backed	997,605		—			997,605			—
Corporate	8,886,454		—			8,771,973			114,481
Equity securities:
Common stocks	34,823		34,139			684			—
Non-redeemable preferred stocks	486,884		—			482,839			4,045
Short-term investments	465,295		392,642		b	72,653		c	—
Collateral held/pledged under securities agreements	74,976		66,971		b	8,005		c	—
Other investments	268,842		58,021		a	208,234		c	2,587		d
Cash equivalents	821,233		818,528		b	2,705		c	—
Other assets	1,735		—			755		f	980		e
Assets held in separate accounts	1,820,241		1,639,251		a	180,990		c	—
Total financial assets	$	15,598,038	$	3,010,257		$	12,465,235		$	122,546
Financial Liabilities
Other liabilities	$	86,155	$	58,021	a	$	34	f	$	28,100	f
Liabilities related to separate accounts	1,820,241		1,639,251		a	180,990		c	—
Total financial liabilities	$	1,906,396	$	1,697,272		$	181,024		$	28,100

	December 31, 2013
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies   and authorities	$	410,656	$	—		$	410,656		$	—
State, municipalities and political subdivisions	835,152		—			812,495			22,657
Foreign governments	675,421		789			657,775			16,857
Asset-backed	6,174		—			6,174			—
Commercial mortgage-backed	60,362		—			59,764			598
Residential mortgage-backed	947,904		—			943,737			4,167
Corporate	8,356,206		—			8,240,862			115,344
Equity securities:
Common stocks	29,232		28,548			684			—
Non-redeemable preferred stocks	429,126		—			421,616			7,510
Short-term investments	470,458		273,518		b	196,940		c	—
Collateral held/pledged under securities agreements	74,212		67,202		b	7,010		c	—
Other investments	246,748		66,659		a	175,918		c	4,171		d
Cash equivalents	1,233,701		967,372		b	266,329		c	—
Other assets	3,726		—			1,235		f	2,491		e
Assets held in separate accounts	1,887,988		1,696,811		a	191,177		c	—
Total financial assets	$	15,667,066	$	3,100,899		$	12,392,372		$	173,795
Financial Liabilities
Other liabilities	$	106,992	$	54,794	a	$	31,868	g	$	20,330	f
Liabilities related to separate accounts	1,887,988		1,696,811		a	191,177		c	—
Total financial liabilities	$	1,994,980	$	1,751,605		$	223,045		$	20,330

a. Mainly includes mutual funds.

b. Mainly includes money market funds.

c. Mainly includes fixed maturity securities.

d. Mainly includes fixed maturity securities and other derivatives.

e. Mainly includes the Consumer Price Index Cap Derivatives (“CPI Caps”).

f. Mainly includes other derivatives.

g. Mainly includes contingent consideration liability related to a business combination.

Change in Balance Sheet Carrying Value Associated with Level 3 Financial Assets and Liabilities Carried at Fair Value

The following tables summarize the change in balance sheet carrying value associated with Level 3 financial assets and liabilities carried at fair value during the three and nine months ended September 30, 2014 and 2013:

	Three Months Ended September 30, 2014
	Balance, beginning  of period			Total gains (losses) (realized/ unrealized) included in earnings (1)			Net unrealized (losses) gains  included in other comprehensive income (2)			Purchases		Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
Commercial mortgage-   backed	$	503		$	—		$	(5	)	$	—	$	(45	)	$	—	$	—		$	453
Corporate	116,827			1,684			(1,840		)	9,637		(3,325		)	1,515		(10,017		)	114,481
Equity Securities
Non-redeemable preferred   stocks	4,099			(1		)	(53		)	—		—			—		—			4,045
Other investments	2,615			(437		)	2			439		(32		)	—		—			2,587
Other assets	2,268			(1,288		)	—			—		—			—		—			980
Financial Liabilities
Other liabilities	(23,160		)	(4,940		)	—			—		—			—		—			(28,100		)
Total level 3 assets and   liabilities	$	103,152		$	(4,982	)	$	(1,896	)	$	10,076	$	(3,402	)	$	1,515	$	(10,017	)	$	94,446

	Three Months Ended September 30, 2013
	Balance, beginning of period			Total (losses) gains (realized/ unrealized) included in earnings  (1)			Net unrealized (losses) gains included in other comprehensive income (2)			Purchases			Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
United States Government   and government agencies   and authorities	$	84		$	—		$	—		$	—		$	(84	)	$	—	$	—		$	—
Foreign governments	21,032			(2		)	(433		)	—			—			—		—			20,597
Commercial mortgage-   backed	683			—			—			—			(42		)	—		—			641
Residential mortgage-   backed	20,326			(18		)	64			—			(583		)	—		(9,004		)	10,785
Corporate	133,623			109			(2,070		)	—			(1,543		)	—		(6,965		)	123,154
Equity Securities
Non-redeemable preferred   stocks	2,301			—			289			—			—			3,527		—			6,117
Other investments	10,601			85			693			—			(636		)	—		—			10,743
Other assets	2,963			(217		)	—			—			—			—		—			2,746
Financial Liabilities
Other liabilities	(1,590		)	(589		)	—			(1,897		)	—			—		—			(4,076		)
Total level 3 assets and   liabilities	$	190,023		$	(632	)	$	(1,457	)	$	(1,897	)	$	(2,888	)	$	3,527	$	(15,969	)	$	170,707

	Nine Months Ended September 30, 2014
	Balance, beginning of period			Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized gains (losses) included in other comprehensive income (2)			Purchases			Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
States, municipalities and   political subdivisions	$	22,657		$	—		$	—		$	—		$	—		$	—	$	(22,657	)	$	—
Foreign governments	16,857			(2		)	18			—			—			—		(16,873		)	—
Commercial mortgage-   backed	598			—			(14		)	—			(131		)	—		—			453
Residential mortgage-   backed	4,167			—			—			—			—			—		(4,167		)	—
Corporate	115,344			1,739			2,286			19,578			(8,608		)	1,515		(17,373		)	114,481
Equity Securities
Non-redeemable preferred   stocks	7,510			327			(186		)	—			(1,830		)	—		(1,776		)	4,045
Other investments	4,171			(1,952		)	11			439			(82		)	—		—			2,587
Other assets	2,491			(1,511		)	—			—			—			—		—			980
Financial Liabilities
Other liabilities	(20,330		)	(3,770		)	—			(4,000		)	—			—		—			(28,100		)
Total level 3 assets and   liabilities	$	153,465		$	(5,169	)	$	2,115		$	16,017		$	(10,651	)	$	1,515	$	(62,846	)	$	94,446

	Nine Months Ended September 30, 2013
	Balance, beginning of period			Total (losses) gains (realized/ unrealized) included in earnings  (1)			Net unrealized (losses) gains included in other comprehensive income (2)			Purchases			Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
United States Government   and government agencies   and authorities	$	4,175		$	—		$	(3	)	$	—		$	(4,172	)	$	—	$	—		$	—
Foreign governments	23,097			(4		)	(2,496		)	—			—			—		—			20,597
Commercial mortgage-   backed	1,774			20			(30		)	—			(1,123		)	—		—			641
Residential mortgage-   backed	8,211			(31		)	(1,145		)	29,938			(1,326		)	—		(24,862		)	10,785
Corporate	158,003			(390		)	(4,000		)	5,325			(25,045		)	4,997		(15,736		)	123,154
Equity Securities
Non-redeemable preferred   stocks	14			12			309			4,308			(2,040		)	3,527		(13		)	6,117
Other investments	11,327			(813		)	1,275			8			(1,054		)	—		—			10,743
Other assets	5,886			(3,140		)	—			—			—			—		—			2,746
Financial Liabilities
Other liabilities	(2,560		)	381			—			(1,897		)	—			—		—			(4,076		)
Total level 3 assets and   liabilities	$	209,927		$	(3,965	)	$	(6,090	)	$	37,682		$	(34,760	)	$	8,524	$	(40,611	)	$	170,707

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

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

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

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

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

	September 30, 2014
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	1,253,424	$	1,434,289	$	—	$	—	$	1,434,289
Policy loans	48,979		48,979		48,979		—		—
Total financial assets	$	1,302,403	$	1,483,268	$	48,979	$	—	$	1,434,289
Financial Liabilities
Policy reserves under investment products   (Individual and group annuities, subject   to discretionary withdrawal) (1)	$	766,039	$	787,947	$	—	$	—	$	787,947
Funds withheld under reinsurance	78,707		78,707		78,707		—		—
Debt	1,171,005		1,273,705		—		1,273,705		—
Obligations under securities agreements	95,973		95,973		95,973		—		—
Total financial liabilities	$	2,111,724	$	2,236,332	$	174,680	$	1,273,705	$	787,947
	December 31, 2013
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	1,287,032	$	1,444,974	$	—	$	—	$	1,444,974
Policy loans	51,678		51,678		51,678		—		—
Total financial assets	$	1,338,710	$	1,496,652	$	51,678	$	—	$	1,444,974
Financial Liabilities
Policy reserves under investment products   (Individual and group annuities, subject   to discretionary withdrawal) (1)	$	809,628	$	808,734	—		—		$	808,734
Funds withheld under reinsurance	76,778		76,778		76,778		—		—
Debt	1,638,118		1,656,588		—		1,656,588		—
Obligations under securities agreements	95,206		95,206		95,206		—		—
Total financial liabilities	$	2,619,730	$	2,637,306	$	171,984	$	1,656,588	$	808,734

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

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Earnings Per Common Share (Narrative) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
SARS
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding anti-dilutive shares excluded from diluted EPS calculation	0	0	0	0
PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding anti-dilutive shares excluded from diluted EPS calculation	0	0	0	0

XML

Fair Value Disclosures (Fair Value for Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	$ 15,598,038		$ 15,667,066
Total financial liabilities	1,906,396		1,994,980
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	3,010,257		3,100,899
Total financial liabilities	1,697,272		1,751,605
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	12,465,235		12,392,372
Total financial liabilities	181,024		223,045
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	122,546		173,795
Total financial liabilities	28,100		20,330
Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	465,295		470,458
Short-term investments | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	392,642	[1]	273,518	[1]
Short-term investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	72,653	[2]	196,940	[2]
Short-term investments | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
Assets held in separate accounts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	1,820,241		1,887,988
Assets held in separate accounts | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	1,639,251	[3]	1,696,811	[3]
Assets held in separate accounts | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	180,990	[2]	191,177	[2]
Assets held in separate accounts | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
Other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	1,735		3,726
Other assets | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
Other assets | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	755	[4]	1,235
Other assets | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	980	[5]	2,491	[5]
Other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial liabilities	86,155		106,992
Other liabilities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial liabilities	58,021	[3]	54,794	[3]
Other liabilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial liabilities	34	[4]	31,868	[6]
Other liabilities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial liabilities	28,100	[4]	20,330	[4]
Liabilities related to separate accounts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial liabilities	1,820,241		1,887,988
Liabilities related to separate accounts | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial liabilities	1,639,251	[3]	1,696,811	[3]
Liabilities related to separate accounts | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial liabilities	180,990	[2]	191,177	[2]
Liabilities related to separate accounts | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial liabilities	0		0
Other investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	268,842		246,748
Other investments | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	58,021	[3]	66,659	[3]
Other investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	208,234	[2]	175,918	[2]
Other investments | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	2,587	[7]	4,171	[7]
Collateral held/pledged under securities agreements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	74,976		74,212
Collateral held/pledged under securities agreements | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	66,971	[1]	67,202	[1]
Collateral held/pledged under securities agreements | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	8,005	[2]	7,010	[2]
Collateral held/pledged under securities agreements | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
Commercial mortgage-backed | Fixed maturity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	58,061		60,362
Commercial mortgage-backed | Fixed maturity securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
Commercial mortgage-backed | Fixed maturity securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	57,608		59,764
Commercial mortgage-backed | Fixed maturity securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	453		598
Residential mortgage-backed | Fixed maturity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	997,605		947,904
Residential mortgage-backed | Fixed maturity securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
Residential mortgage-backed | Fixed maturity securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	997,605		943,737
Residential mortgage-backed | Fixed maturity securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		4,167
United States Government and government agencies and authorities | Fixed maturity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	177,408		410,656
United States Government and government agencies and authorities | Fixed maturity securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
United States Government and government agencies and authorities | Fixed maturity securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	177,408		410,656
United States Government and government agencies and authorities | Fixed maturity securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
States, municipalities and political subdivisions | Fixed maturity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	830,367		835,152
States, municipalities and political subdivisions | Fixed maturity securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
States, municipalities and political subdivisions | Fixed maturity securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	830,367		812,495
States, municipalities and political subdivisions | Fixed maturity securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		22,657
Foreign governments | Fixed maturity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	668,356		675,421
Foreign governments | Fixed maturity securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	705		789
Foreign governments | Fixed maturity securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	667,651		657,775
Foreign governments | Fixed maturity securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		16,857
Asset-backed | Fixed maturity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	5,758		6,174
Asset-backed | Fixed maturity securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
Asset-backed | Fixed maturity securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	5,758		6,174
Asset-backed | Fixed maturity securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
Corporate | Fixed maturity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	8,886,454		8,356,206
Corporate | Fixed maturity securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
Corporate | Fixed maturity securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	8,771,973		8,240,862
Corporate | Fixed maturity securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	114,481		115,344
Equity securities | Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	34,823		29,232
Equity securities | Common Stock | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	34,139		28,548
Equity securities | Common Stock | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	684		684
Equity securities | Common Stock | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
Equity securities | Non-redeemable preferred stocks
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	486,884		429,126
Equity securities | Non-redeemable preferred stocks | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0		0
Equity securities | Non-redeemable preferred stocks | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	482,839		421,616
Equity securities | Non-redeemable preferred stocks | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	4,045		7,510
Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	821,233		1,233,701
Cash equivalents | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	818,528	[1]	967,372	[1]
Cash equivalents | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	2,705	[2]	266,329	[2]
Cash equivalents | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	$ 0		$ 0

[1] Mainly includes money market funds.

[2] Mainly includes fixed maturity securities.

[3] Mainly includes mutual funds.

[4] Mainly includes other derivatives.

[5] Mainly includes the Consumer Price Index Cap Derivatives (“CPI Caps”).

[6] Mainly includes contingent consideration liability related to a business combination.

[7] Mainly includes fixed maturity securities and other derivatives.

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Stock Repurchase (Tables)

9 Months Ended

Sep. 30, 2014

Stock Repurchase [Abstract]

Shares Repurchased

The following table shows the shares repurchased during the periods indicated:

Period in 2014	Number of Shares Repurchased	Average Price Paid Per Share		Total Number of Shares Repurchased as Part of Publicly Announced Programs
January	314,600	$	66.56	314,600
February	—	—		—
March	—	—		—
April	302,000	65.54		302,000
May	292,000	67.22		292,000
June	283,000	67.68		283,000
July	—	—		—
August	386,000	65.07		386,000
September	186,000	65.00		186,000
Total	1,763,600	$	66.18	1,763,600

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Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Net Income, Weighted Average Common Shares Used in Calculating Basic Earnings Per Common Share and Diluted EPS

The following table presents net income, the weighted average common shares used in calculating basic earnings per common share (“EPS”) and those used in calculating diluted EPS for each period presented below.

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2014			2013			2014			2013
Numerator
Net income	$	140,297		$	128,788		$	421,152		$	380,091
Deduct dividends paid	(19,449		)	(18,833		)	(58,382		)	(55,777		)
Undistributed earnings	$	120,848		$	109,955		$	362,770		$	324,314
Denominator
Weighted average shares outstanding used in basic   earnings per share	72,182,547			75,544,542			72,561,191			77,662,796
Incremental common shares from:
SARs	—			53,172			—			73,307
PSUs	864,157			859,572			866,171			823,393
ESPPs	—			2,505			—			2,505
Weighted average shares used in diluted earnings per   share calculations	73,046,704			76,459,791			73,427,362			78,562,001
Earnings per common share - Basic
Distributed earnings	$	0.27		$	0.25		$	0.79		$	0.71
Undistributed earnings	1.67			1.45			5.01			4.18
Net income	$	1.94		$	1.70		$	5.80		$	4.89
Earnings per common share - Diluted
Distributed earnings	$	0.27		$	0.25		$	0.79		$	0.71
Undistributed earnings	1.65			1.43			4.95			4.13
Net income	$	1.92		$	1.68		$	5.74		$	4.84

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Consolidated Statements of Cash Flows (unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013
Statement of Cash Flows [Abstract]
Net cash provided by operating activities	$ 514,664		$ 724,038
Sales of:
Fixed maturity securities available for sale	1,288,291		1,814,687
Equity securities available for sale	83,488		173,499
Other invested assets	60,598		42,312
Property and equipment and other	173		154
Maturities, calls, prepayments, and scheduled redemption of:
Fixed maturity securities available for sale	585,263		695,398
Commercial mortgage loans on real estate	119,085		150,920
Purchases of:
Fixed maturity securities available for sale	(1,877,572)		(2,446,127)
Equity securities available for sale	(122,071)		(168,097)
Commercial mortgage loans on real estate	(88,531)		(109,504)
Other invested assets	(28,402)		(37,524)
Property and equipment and other	(58,879)		(33,519)
Subsidiary, net of cash transferred	(88,155)	[1]	(49,987)	[1]
Equity interest	(20,950)	[2]	0	[2]
Change in short-term investments	2,326		(673,579)
Change in policy loans	2,576		823
Change in collateral held/pledged under securities agreements	(768)		(1,047)
Net cash used in investing activities	(143,528)		(641,591)
Financing activities
Issuance of debt	0		698,093
Repayment of debt	(467,330)		(32,310)
Change in tax benefit from share-based payment arrangements	14,387		(1,724)
Acquisition of common stock	(115,866)		(299,624)
Dividends paid	(58,382)		(55,777)
Payment of contingent obligations	(31,871)	[3]	0	[3]
Change in obligation under securities agreements	768		1,047
Net cash (used in) provided by financing activities	(658,294)		309,705
Effect of exchange rate changes on cash and cash equivalents	(18,760)		(14,859)
Change in cash and cash equivalents	(305,918)		377,293
Cash and cash equivalents at beginning of period	1,717,184		909,404
Cash and cash equivalents at end of period	$ 1,411,266		$ 1,286,697

[1] 2014 includes the acquisitions of StreetLinks, LLC and eMortgage Logic, LLC. 2013 includes the acquisition of Field Asset Services Group Limited.

[2] Relates to the purchase of equity interest in Iké Asistencia.

[3] Relates to the delayed and contingent liability payments established at the time of acquisition of Lifestyle Services Group. Change in amount paid, in comparison to December 31, 2013 amount disclosed, is mainly due to foreign currency translation.

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Retirement and Other Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2014

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost for the Company’s qualified pension benefits plan, nonqualified pension benefits plan and retirement health benefits plan for the three and nine months ended September 30, 2014 and 2013 were as follows:

	Qualified Pension Benefits						Nonqualified Pension Benefits (1)				Retirement Health Benefits
	For the Three Months Ended September 30,						For the Three Months Ended September 30,				For the Three Months Ended September 30,
	2014			2013			2014		2013		2014			2013
Service cost	$	7,966		$	7,832		$	1,139	$	1,008	$	494		$	581
Interest cost	9,521			8,867			1,636		1,480		959			911
Expected return on plan assets	(12,427		)	(11,036		)	—		—		(766		)	(799		)
Amortization of prior service cost	—			4			218		249		(242		)	(241		)
Amortization of net loss (gain)	1,792			3,801			969		1,182		(208		)	—
Curtailment/settlement charge	—			—			436		—		—			—
Net periodic benefit cost	$	6,852		$	9,468		$	4,398	$	3,919	$	237		$	452
	Qualified Pension Benefits						Nonqualified Pension Benefits (1)				Retirement Health Benefits
	For the Nine Months Ended September 30,						For the Nine Months Ended September 30,				For the Nine Months Ended September 30,
	2014			2013			2014		2013		2014			2013
Service cost	$	24,366		$	26,432		$	3,139	$	3,308	$	1,694		$	2,281
Interest cost	27,821			24,017			4,636		3,880		2,909			2,561
Expected return on plan assets	(37,127		)	(33,186		)	—		—		(2,316		)	(2,199		)
Amortization of prior service cost	—			4			618		599		(692		)	(691		)
Amortization of net loss (gain)	6,342			17,451			2,819		4,382		(308		)	—
Curtailment/settlement charge	—			—			436		—		—			—
Net periodic benefit cost	$	21,402		$	34,718		$	11,648	$	12,169	$	1,287		$	1,952

(1) The Company’s nonqualified plan is unfunded.

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Investments (Net Realized Gains (Losses), Including Other-Than-Temporary Impairments) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Gain (Loss) on Investments [Line Items]
Total net realized gains (losses) related to sales and other	$ 17,744	$ (2,429)	$ 43,612	$ 31,573
Total net realized losses related to other-than-temporary impairments	0	(1,202)	(30)	(1,309)
Total net realized gains (losses)	17,744	(3,631)	43,582	30,264
Other investments
Gain (Loss) on Investments [Line Items]
Total net realized gains (losses) related to sales and other	45	(279)	(914)	6,605
Total net realized losses related to other-than-temporary impairments	0	(542)	0	(542)
Fixed maturity securities
Gain (Loss) on Investments [Line Items]
Total net realized gains (losses) related to sales and other	17,848	(2,232)	39,538	20,215
Total net realized losses related to other-than-temporary impairments	0	(660)	(30)	(767)
Equity securities
Gain (Loss) on Investments [Line Items]
Total net realized gains (losses) related to sales and other	$ (149)	$ 82	$ 4,988	$ 4,753

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Stock Repurchase (Shares Repurchased) (Details) (USD $)	1 Months Ended									9 Months Ended
	Sep. 30, 2014	Aug. 31, 2014	Jul. 31, 2014	Jun. 30, 2014	May 31, 2014	Apr. 30, 2014	Mar. 31, 2014	Feb. 28, 2014	Jan. 31, 2014	Sep. 30, 2014
Stock Repurchase [Abstract]
Number of shares repurchased	186,000	386,000	0	283,000	292,000	302,000	0	0	314,600	1,763,600
Average price paid per share	$ 65.00	$ 65.07	$ 0.00	$ 67.68	$ 67.22	$ 65.54	$ 0.00	$ 0.00	$ 66.56	$ 66.18
Total number of shares repurchased as part of publicly announced programs	186,000	386,000	0	283,000	292,000	302,000	0	0	314,600	1,763,600

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Consolidated Balance Sheets (unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost - $10,482,812 in 2014 and $10,520,310 in 2013)	$ 11,624,009	$ 11,291,875
Equity securities available for sale, at fair value (cost - $458,965 in 2014 and $417,535 in 2013)	521,707	458,358
Commercial mortgage loans on real estate, at amortized cost	1,253,424	1,287,032
Policy loans	48,979	51,678
Short-term investments	465,295	470,458
Collateral held/pledged under securities agreements	95,977	95,215
Other investments	599,423	589,399
Total investments	14,608,814	14,244,015
Cash and cash equivalents	1,411,266	1,717,184
Premiums and accounts receivable, net	1,340,200	1,080,171
Reinsurance recoverables	6,149,708	5,752,134
Accrued investment income	151,108	145,189
Deferred acquisition costs	3,277,810	3,128,931
Property and equipment, at cost less accumulated depreciation	274,419	253,630
Goodwill	816,818	784,561
Value of business acquired	47,492	53,549
Other intangible assets, net	369,021	354,636
Other assets	354,382	258,942
Assets held in separate accounts	1,872,091	1,941,747
Total assets	30,673,129	29,714,689
Liabilities
Future policy benefits and expenses	8,813,702	8,646,572
Unearned premiums	6,784,089	6,662,672
Claims and benefits payable	3,577,964	3,389,371
Commissions payable	596,990	429,636
Reinsurance balances payable	110,507	106,932
Funds held under reinsurance	78,707	76,778
Deferred gain on disposal of businesses	88,362	99,311
Obligation under securities agreements	95,973	95,206
Accounts payable and other liabilities	1,793,509	1,662,348
Deferred income taxes, net	323,073	129,148
Tax payable	24,594	3,371
Debt	1,171,005	1,638,118
Liabilities related to separate accounts	1,872,091	1,941,747
Total liabilities	25,330,566	24,881,210
Commitments and contingencies (Note 14)
Stockholders’ equity
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 70,809,613 and 71,828,208 shares outstanding at September 30, 2014 and December 31, 2013, respectively	1,490	1,482
Additional paid-in capital	3,117,645	3,087,533
Retained earnings	4,778,645	4,415,875
Accumulated other comprehensive income	659,746	426,830
Treasury stock, at cost; 77,803,252 and 76,039,652 shares at September 30, 2014 and December 31, 2013, respectively	(3,214,963)	(3,098,241)
Total stockholders’ equity	5,342,563	4,833,479
Total liabilities and stockholders’ equity	$ 30,673,129	$ 29,714,689

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Fair Value Disclosures (Narrative) (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant transfers between Level 1 and Level 2 financial assets	$ 0
Allowance for doubtful accounts reinsurance recoverable	10,820,000	10,820,000
Priced externally | Market Approach Valuation Technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	65,811,000	70,244,000
Priced internally | Market Approach Valuation Technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 53,626,000	$ 97,219,000

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Consolidated Statement of Comprehensive Income (unaudited) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Comprehensive Income [Abstract]
Net change in unrealized gains on securities, taxes	$ 27,439	$ 21,164	$ (129,418)	$ 220,190
Net change in other-than-temporary impairment gains, taxes	48	(150)	(1,236)	(1,064)
Net change in foreign currency translation, taxes	(10,957)	(1,627)	1,396	4,178
Amortization of pension and postretirement unrecognized net periodic benefit cost, taxes	$ (885)	$ (1,748)	$ (3,073)	$ (7,610)

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Segment Information (Financial Information by Segment) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 segment	Sep. 30, 2013	Dec. 31, 2013
Segment Reporting Information [Line Items]
Number of reportable segments			5
Net earned premiums	$ 2,257,809	$ 1,947,431	$ 6,490,005	$ 5,714,293
Net investment income	162,009	159,209	497,575	489,118
Net realized gains on investments	17,744	(3,631)	43,582	30,264
Amortization of deferred gain on disposal of businesses	3,645	4,074	10,949	12,238
Fees and other income	261,281	151,567	716,850	401,126
Total revenues	2,702,488	2,258,650	7,758,961	6,647,039
Policyholder benefits	1,123,693	933,832	3,281,338	2,708,143
Amortization of deferred acquisition costs and value of business acquired	386,709	372,750	1,098,080	1,101,998
Underwriting, general and administrative expenses	953,559	737,326	2,681,135	2,168,367
Interest expense	13,776	20,771	44,617	57,369
Total benefits, losses and expenses	2,477,737	2,064,679	7,105,170	6,035,877
Income before provision for income taxes	224,751	193,971	653,791	611,162
Provision (benefit) for income taxes	84,454	65,183	232,639	231,071
Net income	140,297	128,788	421,152	380,091
Segment assets, excluding goodwill	29,856,311		29,856,311		28,930,128
Goodwill	816,818		816,818		784,561
Total assets	30,673,129		30,673,129		29,714,689
Solutions
Segment Reporting Information [Line Items]
Net earned premiums	812,512	684,973	2,335,498	2,056,300
Net investment income	95,898	92,845	288,146	282,502
Net realized gains on investments	0	0	0	0
Amortization of deferred gain on disposal of businesses	0	0	0	0
Fees and other income	156,807	107,908	461,268	279,758
Total revenues	1,065,217	885,726	3,084,912	2,618,560
Policyholder benefits	257,000	226,263	781,908	647,713
Amortization of deferred acquisition costs and value of business acquired	287,110	286,343	824,023	851,326
Underwriting, general and administrative expenses	442,087	325,537	1,238,830	969,112
Interest expense	0	0	0	0
Total benefits, losses and expenses	986,197	838,143	2,844,761	2,468,151
Income before provision for income taxes	79,020	47,583	240,151	150,409
Provision (benefit) for income taxes	27,171	11,374	79,300	47,902
Net income	51,849	36,209	160,851	102,507
Segment assets, excluding goodwill	14,133,609		14,133,609		13,321,648
Specialty Property
Segment Reporting Information [Line Items]
Net earned premiums	654,889	612,165	1,911,589	1,727,724
Net investment income	24,574	23,819	77,750	74,723
Net realized gains on investments	0	0	0	0
Amortization of deferred gain on disposal of businesses	0	0	0	0
Fees and other income	87,271	29,786	209,035	82,202
Total revenues	766,734	665,770	2,198,374	1,884,649
Policyholder benefits	258,344	228,508	830,073	649,554
Amortization of deferred acquisition costs and value of business acquired	90,356	79,361	249,189	229,686
Underwriting, general and administrative expenses	258,589	181,172	708,837	520,307
Interest expense	0	0	0	0
Total benefits, losses and expenses	607,289	489,041	1,788,099	1,399,547
Income before provision for income taxes	159,445	176,729	410,275	485,102
Provision (benefit) for income taxes	54,716	61,679	139,495	169,288
Net income	104,729	115,050	270,780	315,814
Segment assets, excluding goodwill	4,060,535		4,060,535		3,858,314
Health
Segment Reporting Information [Line Items]
Net earned premiums	526,705	398,000	1,454,726	1,172,775
Net investment income	8,312	9,168	27,538	27,861
Net realized gains on investments	0	0	0	0
Amortization of deferred gain on disposal of businesses	0	0	0	0
Fees and other income	10,593	7,630	27,787	21,061
Total revenues	545,610	414,798	1,510,051	1,221,697
Policyholder benefits	430,499	295,534	1,136,113	868,307
Amortization of deferred acquisition costs and value of business acquired	1,511	266	1,759	532
Underwriting, general and administrative expenses	123,176	107,086	366,585	314,085
Interest expense	0	0	0	0
Total benefits, losses and expenses	555,186	402,886	1,504,457	1,182,924
Income before provision for income taxes	(9,576)	11,912	5,594	38,773
Provision (benefit) for income taxes	7,813	5,351	32,554	33,472
Net income	(17,389)	6,561	(26,960)	5,301
Segment assets, excluding goodwill	1,053,512		1,053,512		884,077
Employee Benefits
Segment Reporting Information [Line Items]
Net earned premiums	263,703	252,293	788,192	757,494
Net investment income	28,594	28,516	89,649	88,856
Net realized gains on investments	0	0	0	0
Amortization of deferred gain on disposal of businesses	0	0	0	0
Fees and other income	6,305	6,032	18,332	17,605
Total revenues	298,602	286,841	896,173	863,955
Policyholder benefits	177,850	183,527	533,244	541,107
Amortization of deferred acquisition costs and value of business acquired	7,732	6,780	23,109	20,454
Underwriting, general and administrative expenses	92,586	87,329	274,534	266,628
Interest expense	0	0	0	0
Total benefits, losses and expenses	278,168	277,636	830,887	828,189
Income before provision for income taxes	20,434	9,205	65,286	35,766
Provision (benefit) for income taxes	7,333	3,056	23,838	12,060
Net income	13,101	6,149	41,448	23,706
Segment assets, excluding goodwill	2,272,749		2,272,749		2,298,698
Corporate & Other
Segment Reporting Information [Line Items]
Net earned premiums	0	0	0	0
Net investment income	4,631	4,861	14,492	15,176
Net realized gains on investments	17,744	(3,631)	43,582	30,264
Amortization of deferred gain on disposal of businesses	3,645	4,074	10,949	12,238
Fees and other income	305	211	428	500
Total revenues	26,325	5,515	69,451	58,178
Policyholder benefits	0	0	0	1,462
Amortization of deferred acquisition costs and value of business acquired	0	0	0	0
Underwriting, general and administrative expenses	37,121	36,202	92,349	98,235
Interest expense	13,776	20,771	44,617	57,369
Total benefits, losses and expenses	50,897	56,973	136,966	157,066
Income before provision for income taxes	(24,572)	(51,458)	(67,515)	(98,888)
Provision (benefit) for income taxes	(12,579)	(16,277)	(42,548)	(31,651)
Net income	(11,993)	(35,181)	(24,967)	(67,237)
Segment assets, excluding goodwill	$ 8,335,906		$ 8,335,906		$ 8,567,391

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Acquisitions (Details) In Thousands, unless otherwise specified			0 Months Ended			0 Months Ended					0 Months Ended		0 Months Ended		0 Months Ended
	Sep. 30, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 30, 2013 Mexican Operations of Ike USD ($)	Dec. 30, 2013 Mexican Operations of Ike MXN	Dec. 30, 2013 Mexican Operations of Ike	Feb. 10, 2014 Latin American Operations of Ike USD ($)	Feb. 10, 2014 Latin American Operations of Ike MXN	Feb. 10, 2014 Ike	Mar. 24, 2014 Lifestyle Services Group Limited USD ($)	Mar. 24, 2014 Lifestyle Services Group Limited GBP (£)	Apr. 16, 2014 Streetlinks LLC USD ($)	Apr. 16, 2014 Streetlinks LLC USD ($)	Sep. 03, 2014 eMortgage Logic LLC USD ($)	Sep. 03, 2014 eMortgage Logic LLC USD ($)	Apr. 16, 2014 Minimum Streetlinks LLC	Sep. 03, 2014 Minimum eMortgage Logic LLC	Apr. 16, 2014 Maximum Streetlinks LLC	Sep. 03, 2014 Maximum eMortgage Logic LLC
Business Acquisition [Line Items]
Cash paid for acquisition			$ 91,420	1,191,499		$ 20,950	272,541				$ 60,905		$ 17,000
Percentage of interest acquired					40.00%	40.00%	40.00%
Ownership interest percentage								40.00%
Business combination, delayed payment									4,951	3,000
Contingent consideration									26,920	16,313		5,000		10,231
Fair value of consideration transferred											65,905		28,263
Intangible assets recorded in connection with acquisition												47,970		11,270
Amortization period of acquired intangible assets															2 years	3 years	12 years	11 years
Goodwill	$ 816,818	$ 784,561										$ 14,738		$ 14,058

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which the Company is the reinsurer. These letters of credit are supported by commitments under which the Company is required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. The Company had $17,708 and $17,343 of letters of credit outstanding as of September 30, 2014 and December 31, 2013, respectively.

As previously disclosed, during the first quarter of 2013, the Company and two of its wholly owned subsidiaries in the Assurant Specialty Property segment, American Security Insurance Company (“ASIC”) and American Bankers Insurance Company of Florida (“ABIC”), reached an agreement with the New York Department of Financial Services (the “NYDFS”) regarding the Company’s lender-placed insurance business in the State of New York. Under the terms of the agreement, and without admitting or denying any wrongdoing, ASIC made a $14,000 settlement payment to the NYDFS. In addition, among other things, ASIC and ABIC agreed to modify certain business practices in accordance with requirements that apply to all New York-licensed lender-placed insurers of properties in the state, and filed our new lender-placed program and new rates in New York which were approved in August 2014. The Company also continues to respond to and cooperate with other regulators regarding its lender-placed insurance business.

In addition, as previously disclosed, the Company is involved in a variety of litigation relating to its current and past business operations and may from time to time become involved in other such actions. In particular, the Company is a defendant in class actions in a number of jurisdictions regarding its lender-placed insurance programs. These cases allege a variety of claims under a number of legal theories. The plaintiffs seek premium refunds and other relief. The Company continues to defend itself vigorously in these class actions. The Company has accrued an estimated loss for this litigation.

We have participated and may participate in settlements on terms that we consider reasonable given the strength of our defenses. However, the possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and involves significant uncertainty. Consequently, no estimate can be made of any possible loss or range of loss in excess of the above-mentioned accrual.

In July 2007 an Assurant subsidiary acquired Swansure Group, a privately held U.K. company, which owned D&D Homecare Limited (“D&D”). D&D was a packager of mortgages and certain insurance products, including Payment Protection Insurance (“PPI”) policies that, for a period of time, were underwritten by an Assurant subsidiary and sold by various alleged agents, including Carrington Carr Home Finance Limited (“CCHFL”), which is now in administration. In early 2014, as a result of consumer complaints alleging that CCHFL missold certain D&D-packaged PPI policies between August 8, 2003 and November 1, 2004, the U.K. Financial Ombudsman Service (“FOS”) requested that an Assurant subsidiary, Assurant Intermediary Limited (“AIL”), review complaints relating to CCHFL’s sale of such PPI policies. AIL is cooperating with the FOS. The possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and involves significant uncertainty. Consequently, no estimate can be made of any possible loss or range of loss in excess of the above-mentioned accrual.

Although the Company cannot predict the outcome of any action, it is possible that such outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows for an individual reporting period. However, based on currently available information, management does not believe that the pending matters are likely to have a material adverse effect, individually or in the aggregate, on the Company’s financial condition.

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Investments (Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and OTTI) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Sep. 30, 2014		Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, cost or amortized cost	$ 10,482,812		$ 10,520,310
Fixed maturity securities, fair value	11,624,009		11,291,875
Equity securities, cost or amortized cost	458,965		417,535
Equity securities, fair value	521,707		458,358
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Equity securities, cost or amortized cost	458,965		417,535
Equity securities, gross unrealized gains	65,228		50,232
Equity securities, gross unrealized losses	(2,486)		(9,409)
Equity securities, fair value	521,707		458,358
OTTI in AOCI	0	[1]	0	[1]
Equity securities | Common Stock
Schedule of Available-for-sale Securities [Line Items]
Equity securities, cost or amortized cost	21,129		17,890
Equity securities, gross unrealized gains	13,743		11,352
Equity securities, gross unrealized losses	(49)		(10)
Equity securities, fair value	34,823		29,232
OTTI in AOCI	0	[1]	0	[1]
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, cost or amortized cost	10,482,812		10,520,310
Fixed maturity securities, gross unrealized gains	1,159,307		834,693
Fixed maturity securities, gross unrealized losses	(18,110)		(63,128)
Fixed maturity securities, fair value	11,624,009		11,291,875
OTTI in AOCI	44,187	[1]	40,657	[1]
Fixed maturity securities | United States government and government agencies and authorities
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, cost or amortized cost	172,994		408,378
Fixed maturity securities, gross unrealized gains	5,053		4,166
Fixed maturity securities, gross unrealized losses	(639)		(1,888)
Fixed maturity securities, fair value	177,408		410,656
OTTI in AOCI	0	[1]	0	[1]
Fixed maturity securities | States, municipalities and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, cost or amortized cost	758,072		774,233
Fixed maturity securities, gross unrealized gains	72,812		63,543
Fixed maturity securities, gross unrealized losses	(517)		(2,624)
Fixed maturity securities, fair value	830,367		835,152
OTTI in AOCI	0	[1]	0	[1]
Fixed maturity securities | Foreign governments
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, cost or amortized cost	610,000		647,486
Fixed maturity securities, gross unrealized gains	60,062		35,543
Fixed maturity securities, gross unrealized losses	(1,706)		(7,608)
Fixed maturity securities, fair value	668,356		675,421
OTTI in AOCI	0	[1]	0	[1]
Fixed maturity securities | Asset-backed
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, cost or amortized cost	4,061		4,320
Fixed maturity securities, gross unrealized gains	1,729		1,910
Fixed maturity securities, gross unrealized losses	(32)		(56)
Fixed maturity securities, fair value	5,758		6,174
OTTI in AOCI	1,620	[1]	1,773	[1]
Fixed maturity securities | Corporate
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, cost or amortized cost	7,931,922		7,709,083
Fixed maturity securities, gross unrealized gains	966,302		684,776
Fixed maturity securities, gross unrealized losses	(11,770)		(37,653)
Fixed maturity securities, fair value	8,886,454		8,356,206
OTTI in AOCI	23,163	[1]	19,359	[1]
Fixed maturity securities | Commercial mortgage-backed
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, cost or amortized cost	56,527		57,594
Fixed maturity securities, gross unrealized gains	1,534		2,850
Fixed maturity securities, gross unrealized losses	0		(82)
Fixed maturity securities, fair value	58,061		60,362
OTTI in AOCI	0	[1]	0	[1]
Fixed maturity securities | Residential mortgage-backed
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, cost or amortized cost	949,236		919,216
Fixed maturity securities, gross unrealized gains	51,815		41,905
Fixed maturity securities, gross unrealized losses	(3,446)		(13,217)
Fixed maturity securities, fair value	997,605		947,904
OTTI in AOCI	19,404	[1]	19,525	[1]
Non-redeemable preferred stocks | Equity securities
Schedule of Available-for-sale Securities [Line Items]
Equity securities, cost or amortized cost	437,836		399,645
Equity securities, gross unrealized gains	51,485		38,880
Equity securities, gross unrealized losses	(2,437)		(9,399)
Equity securities, fair value	486,884		429,126
OTTI in AOCI	$ 0	[1]	$ 0	[1]

[1] Represents the amount of OTTI recognized in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date

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Catastrophe Bond Program

9 Months Ended

Sep. 30, 2014

Catastrophe Bond Program [Abstract]

Catastrophe Bond Program

Catastrophe Bond Program

On January 30, 2012, certain of the Companies’ subsidiaries (“the Subsidiaries”) entered into two reinsurance agreements with Ibis Re II Ltd. (“Ibis Re II”). Ibis Re II is an independent special purpose reinsurance company domiciled in the Cayman Islands. The Ibis Re II agreements provide up to $130,000 of reinsurance coverage for protection against losses over a three-year period from individual hurricane events in Hawaii, Puerto Rico, and along the Gulf and Eastern Coasts of the United States. The agreements expire in February 2015. Ibis Re II financed the property catastrophe reinsurance coverage by issuing $130,000 in catastrophe bonds to unrelated investors (the “Series 2012-1 Notes”).

On June 26, 2013, the Subsidiaries entered into three additional reinsurance agreements with Ibis Re II providing up to $185,000 of reinsurance coverage for protection against losses over a three-year period from individual hurricane events in Hawaii, Puerto Rico, and along the Gulf and Eastern Coasts of the United States. The agreements expire in June 2016. Ibis Re II financed the property catastrophe reinsurance coverage by issuing $185,000 in catastrophe bonds to unrelated investors (the “Series 2013-1 Notes”).

The $315,000 of coverage represents approximately 18% of the expected first event coverage (net of reimbursements of the Florida Hurricane Catastrophe Fund) purchased by the Company in excess of the Company’s anticipated retention.

Under the terms of these reinsurance agreements, the Subsidiaries are obligated to pay annual reinsurance premiums to Ibis Re II for the reinsurance coverage. The reinsurance agreements with Ibis Re II utilize a dual trigger that is based upon an index that is created by applying predetermined percentages to insured industry losses in each state in the covered area as reported by an independent party and the Subsidiaries’ covered losses incurred. Reinsurance contracts that have a separate, pre-identified variable (e.g., a loss-based index) are accounted for as reinsurance if certain conditions are met. In the case of the reinsurance agreements with Ibis Re II, these conditions were met, thus the Company accounted for them as reinsurance in accordance with the guidance for reinsurance contracts.

Amounts payable to the Subsidiaries under the reinsurance agreements will be determined by the index-based losses, which are designed to approximate the Subsidiaries’ actual losses from any covered event. The amount of actual losses and index losses from any covered event may differ. For each covered event, Ibis Re II pays the Subsidiaries the lesser of the covered index-based losses or the Subsidiaries’ actual losses. The principal amount of the catastrophe bonds will be reduced by any amounts paid to the Subsidiaries under the reinsurance agreements. The Subsidiaries have not incurred any losses subject to the reinsurance agreements since their inception.

As of September 30, 2014 and 2013, the Company had not ceded any losses to Ibis Re II.

As with any reinsurance agreement, there is credit risk associated with collecting amounts due from reinsurers. With regard to the Series 2012-1 Notes and Series 2013-1 Notes, the credit risk is mitigated by reinsurance trust accounts for each tranche within each Series. The reinsurance trust accounts have been funded by Ibis Re II with money market funds that invest solely in direct government obligations backed by the U.S. government with maturities of no more than 13 months. The money market funds must have a principal stability rating of at least AAA by Standard & Poor’s.

As a result of an evaluation of the reinsurance agreements with Ibis Re II, the Company concluded that Ibis Re II is a variable interest entity (“VIE”). However, while Ibis Re II is a VIE, the Company concluded that it does not have a significant variable interest in Ibis Re II as the variability in results, caused by the reinsurance agreements, is expected to be absorbed entirely by the bondholders and the Company is not entitled to any residual amounts. Accordingly, the Company is not the primary beneficiary of Ibis Re II and does not consolidate the entities in the Company’s financial statements.

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Consolidated Statement of Changes in Stockholders' Equity (unaudited) (USD $) In Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock
Balance at Dec. 31, 2013	$ 4,833,479	$ 1,482	$ 3,087,533	$ 4,415,875	$ 426,830	$ (3,098,241)
Stock plan exercises	(19,282)	8	(19,290)	0	0	0
Stock plan compensation expense	35,015	0	35,015	0	0	0
Change in tax benefit from share-based payment arrangements	14,387	0	14,387	0	0	0
Dividends	(58,382)	0	0	(58,382)	0	0
Acquisition of common stock	(116,722)	0	0	0	0	(116,722)
Net income	421,152	0	0	421,152	0	0
Other comprehensive income	232,916	0	0	0	232,916	0
Balance at Sep. 30, 2014	$ 5,342,563	$ 1,490	$ 3,117,645	$ 4,778,645	$ 659,746	$ (3,214,963)

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Consolidated Balance Sheets (unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Fixed maturity securities available for sale, amortized cost	$ 10,482,812	$ 10,520,310
Equity securities available for sale, cost	$ 458,965	$ 417,535
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares outstanding	70,809,613	71,828,208
Treasury stock, shares, at cost	77,803,252	76,039,652

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Stock Based Compensation

9 Months Ended

Sep. 30, 2014

Share-based Compensation [Abstract]

Stock Based Compensation

Stock Based Compensation

Long-Term Equity Incentive Plan

In May 2008, the Company’s shareholders approved the Assurant, Inc. Long-Term Equity Incentive Plan (“ALTEIP”), which authorized the granting of up to 3,400,000 new shares of the Company’s common stock to employees, officers and non-employee directors. In May 2010, the Company’s shareholders approved an amended and restated ALTEIP, increasing the number of shares of the Company’s common stock authorized for issuance to 5,300,000 new shares. Under the ALTEIP, the Company may grant awards based on shares of its common stock, including stock options, stock appreciation rights (“SARs”), restricted stock (including performance shares), unrestricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”) and dividend equivalents. All share-based grants are awarded under the ALTEIP.

The Compensation Committee of the Board of Directors (the “Compensation Committee”) awards PSUs and RSUs annually. RSUs and PSUs are promises to issue actual shares of common stock at the end of a vesting period or performance period. The RSUs granted to employees under the ALTEIP were based on salary grade and performance and vest one-third each year over a three-year period. RSUs granted to non-employee directors also vest one-third each year over a three-year period, however, issuance of vested shares is deferred until separation from Board service. RSUs receive dividend equivalents in cash during the restricted period and do not have voting rights during the restricted period. PSUs accrue dividend equivalents during the performance period based on a target payout, and will be paid in cash at the end of the performance period based on the actual number of shares issued. The fair value of RSUs is estimated using the fair market value of a share of the Company’s common stock at the date of grant. The fair value of PSUs is estimated using the Monte Carlo simulation model and is described in further detail below.

For the PSU portion of an award, the number of shares a participant will receive upon vesting is contingent upon the Company’s performance with respect to selected metrics, identified below, compared against a broad index of insurance companies and assigned a percentile ranking. These rankings are then averaged to determine the composite percentile ranking for the performance period. The payout levels can vary between 0% and 150% (maximum) of the target (100%) ALTEIP award amount based on the Company’s level of performance against the selected metrics.

PSU Performance Goals. The Compensation Committee established book value per share (“BVPS”) growth excluding AOCI, revenue growth and total stockholder return as the three performance measures for PSU awards. BVPS growth is defined as the year-over-year growth of the Company’s stockholders’ equity excluding AOCI divided by the number of fully diluted total shares outstanding at the end of the period. Revenue growth is defined as the year-over-year change in total revenues as disclosed in the Company’s annual statement of operations. Total stockholder return is defined as appreciation in Company stock plus dividend yield to stockholders. Payouts will be determined by measuring performance against the average performance of companies included in an insurance industry market index.

Since 2009, the Company has used the A.M. Best U.S. Insurance Index to measure its relative performance ranking. In 2014, A.M. Best stopped publishing this index. As of January 1, 2014, the Company is using the S&P Total Market Index to measure the Company’s performance for all new and outstanding PSU awards. Consistent with adjustments made to the A.M. Best U.S. Insurance Index, adjustments will be made to the S&P Total Market Index to exclude companies with revenues of less than $1,000,000 or that are not in the insurance or managed healthcare Global Industry Classification Standard codes. In addition, companies within the Company’s compensation peer group, but not otherwise in the S&P Total Market Index, will be included. The adjusted S&P Total Market Index is substantially similar in composition to the previous A.M. Best U.S. Insurance Index.

Under the ALTEIP, the Company’s Chief Executive Officer (“CEO”) is authorized by the Board of Directors to grant common stock, restricted stock and RSUs to employees other than the executive officers of the Company (as defined in Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). The Board of Directors reviews and ratifies these grants quarterly. Restricted stock and RSUs granted under this program may have different vesting periods.

Restricted Stock Units

RSUs granted to employees and to non-employee directors were 27,347 and 14,916 for the three months ended September 30, 2014 and 2013, respectively, and 358,611 and 481,134 for the nine months ended September 30, 2014 and 2013, respectively. The compensation expense recorded related to RSUs was $6,197 and $6,936 for the three months ended September 30, 2014 and 2013, respectively, and $17,174 and $19,207 for the nine months ended September 30, 2014 and 2013, respectively. The related total income tax benefit was $2,167 and $2,425 for the three months ended September 30, 2014 and 2013, respectively, and $6,001 and $6,714 for the nine months ended September 30, 2014 and 2013, respectively. The weighted average grant date fair value for RSUs granted during the nine months ended September 30, 2014 and 2013 was $65.32 and $44.18, respectively.

As of September 30, 2014, there was $19,197 of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 1.16 years. The total fair value of RSUs vested during the three months ended September 30, 2014 and 2013 was $1,473 and $982, respectively, and $32,354 and $20,832 for the nine months ended September 30, 2014 and 2013, respectively.

Performance Share Units

No PSUs were granted to employees during the three months ended September 30, 2014 and 2013. PSUs granted to employees were 380,349 and 408,808 for the nine months ended September 30, 2014 and 2013, respectively. The compensation expense recorded related to PSUs was $3,460 and $7,839 for the three months ended September 30, 2014 and 2013, respectively, and $17,022 and $16,688 for the nine months ended September 30, 2014 and 2013, respectively. The related total income tax benefit was $1,206 and $2,738 for the three months ended September 30, 2014 and 2013, respectively, and $5,942 and $5,832 for the nine months ended September 30, 2014 and 2013, respectively. The weighted average grant date fair value for PSUs granted during the nine months ended September 30, 2014 and 2013 was $64.93 and $44.22, respectively.

As of September 30, 2014, there was $23,107 of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 0.87 years.

The fair value of PSUs with market conditions was estimated on the date of grant using a Monte Carlo simulation model, which utilizes multiple variables that determine the probability of satisfying the market condition stipulated in the award. Expected volatilities for awards issued during the nine months ended September 30, 2014 and 2013 were based on the historical stock prices of the Company’s stock and peer insurance group. The expected term for grants issued during the nine months ended September 30, 2014 and 2013 was assumed to equal the average of the vesting period of the PSUs. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant.

Employee Stock Purchase Plan

Under the Employee Stock Purchase Plan (“ESPP”), the Company is authorized to issue up to 5,000,000 new shares to employees who are participants in the ESPP. Eligible employees can purchase shares at a 10% discount applied to the lower of the closing price of the common stock on the first or last day of the offering period.

In January 2014, the Company issued 75,709 shares at a discounted price of $46.36 for the offering period of July 1, 2013 through December 31, 2013. In January 2013, the Company issued 107,535 shares at a discounted price of $31.23 for the offering period of July 1, 2012 through December 31, 2012.

In July 2014, the Company issued 65,867 shares at a discounted price of $58.79 for the offering period of January 1, 2014 through June 30, 2014. In July 2013, the Company issued 110,038 shares at a discounted price of $31.93 for the offering period of January 1, 2013 through June 30, 2013.

The compensation expense recorded related to the ESPP was $308 and $300 for the three months ended September 30, 2014 and 2013, respectively, and $893 and $798 for the nine months ended 2014 and 2013, respectively.

The fair value of each award under the ESPP was estimated at the beginning of each offering period using the Black-Scholes option-pricing model. Expected volatilities are based on implied volatilities from traded options on the Company’s stock and the historical volatility of the Company’s stock. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is based on the current annualized dividend and share price as of the grant date.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 30, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 30, 2014
Amendment Flag	false
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001267238
Entity Filer Category	Large Accelerated Filer
Entity Registrant Name	ASSURANT INC
Entity Common Stock, Shares Outstanding		70,255,038
Trading Symbol	AIZ

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Stock Repurchase

9 Months Ended

Sep. 30, 2014

Stock Repurchase [Abstract]

Stock Repurchase

Stock Repurchase

The following table shows the shares repurchased during the periods indicated:

Period in 2014	Number of Shares Repurchased	Average Price Paid Per Share		Total Number of Shares Repurchased as Part of Publicly Announced Programs
January	314,600	$	66.56	314,600
February	—	—		—
March	—	—		—
April	302,000	65.54		302,000
May	292,000	67.22		292,000
June	283,000	67.68		283,000
July	—	—		—
August	386,000	65.07		386,000
September	186,000	65.00		186,000
Total	1,763,600	$	66.18	1,763,600

On November 18, 2013, the Company’s Board of Directors authorized the Company to repurchase up to an additional $600,000 of its outstanding common stock, making the total remaining under the total repurchase authorization $752,436 as of that date.

As of December 31, 2013, there was $704,874 remaining under the total repurchase authorization. During the nine months ended September 30, 2014, the Company repurchased 1,763,600 shares of the Company’s outstanding common stock at a cost of $116,686, exclusive of commissions, leaving $588,188 remaining under the total repurchase authorization at September 30, 2014.

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Consolidated Statements of Operations (unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues
Net earned premiums	$ 2,257,809	$ 1,947,431	$ 6,490,005	$ 5,714,293
Net investment income	162,009	159,209	497,575	489,118
Net realized gains (losses) on investments, excluding other-than-temporary impairment losses	17,744	(2,429)	43,612	31,573
Total other-than-temporary impairment losses	0	(1,230)	(69)	(1,409)
Portion of net loss recognized in other comprehensive income, before taxes	0	28	39	100
Net other-than-temporary impairment losses recognized in earnings	0	(1,202)	(30)	(1,309)
Amortization of deferred gain on disposal of businesses	3,645	4,074	10,949	12,238
Fees and other income	261,281	151,567	716,850	401,126
Total revenues	2,702,488	2,258,650	7,758,961	6,647,039
Benefits, losses and expenses
Policyholder benefits	1,123,693	933,832	3,281,338	2,708,143
Amortization of deferred acquisition costs and value of business acquired	386,709	372,750	1,098,080	1,101,998
Underwriting, general and administrative expenses	953,559	737,326	2,681,135	2,168,367
Interest expense	13,776	20,771	44,617	57,369
Total benefits, losses and expenses	2,477,737	2,064,679	7,105,170	6,035,877
Income before provision for income taxes	224,751	193,971	653,791	611,162
Provision for income taxes	84,454	65,183	232,639	231,071
Net income	$ 140,297	$ 128,788	$ 421,152	$ 380,091
Earnings Per Share
Basic (in dollars per share)	$ 1.94	$ 1.70	$ 5.80	$ 4.89
Diluted (in dollars per share)	$ 1.92	$ 1.68	$ 5.74	$ 4.84
Dividends per share (in dollars per share)	$ 0.27	$ 0.25	$ 0.79	$ 0.71
Share Data
Weighted average shares outstanding used in basic per share calculations (in shares)	72,182,547	75,544,542	72,561,191	77,662,796
Plus: Dilutive securities (in shares)	864,157	915,249	866,171	899,205
Weighted average shares used in diluted per share calculations (in shares)	73,046,704	76,459,791	73,427,362	78,562,001

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Acquisitions

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Acquisitions

Acquisitions

As previously disclosed, on December 30, 2013, the Company paid Mex$1,191,499 (U.S.D. $91,420) for a 40% investment in the Mexican operations of Iké Asistencia (“Iké”), an assistance services business with operations in Mexico and other countries in Latin America. In addition, on February 10, 2014, the Company made a previously disclosed payment of Mex$272,541 (U.S.D. $20,950) for 40% of Iké’s Latin American operations. Following the February 10, 2014 payment, the Company owns 40% of the equity interests and outstanding shares of Iké and, under the terms of the agreements, will also have options to acquire the remaining interest in Iké over time.

On March 24, 2014, the Company made the required delayed payment of £3,000 ($4,951) and contingent payment of £16,313 ($26,920) to complete the previously disclosed October 25, 2013 acquisition of Lifestyle Services Group. The contingent payment was made given the stipulated contractual renewal of a key client.

On April 16, 2014, the Company acquired StreetLinks, LLC, a leading independent appraisal management company, from Novation Companies, Inc. The acquisition-date fair value of the consideration transferred totaled $65,905, which consists of an initial cash payment of $60,905 and a contingent payment of $5,000. The contingent consideration arrangement is based on future expected revenue. In connection with the acquisition, the Company recorded $47,970 of customer and technology based intangible assets, all of which are amortizable over a 2 to 12 year period, and $14,738 of goodwill, none of which is tax-deductible. The primary factor contributing to the recognition of goodwill is the future expected growth of this business within Assurant Specialty Property. 

On September 3, 2014, the Company acquired eMortgage Logic, LLC, a national provider of residential valuation products and valuation technology services. The acquisition-date fair value totaled $28,263, which primarily consists of an initial cash payment of $17,000 and a contingent payment of $10,231. The contingent consideration arrangement is based on future expected revenue. In connection with the acquisition, the Company recorded $11,270 of customer and technology based intangible assets, all of which are amortizable over a 3 to 11 year period, and $14,058 of goodwill, all of which is tax-deductible. The primary factor contributing to the recognition of goodwill is the future expected growth of this business within Assurant Specialty Property.

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Adopted

On January 1, 2014, the Company adopted the new guidance on presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this guidance state that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. An exception to this guidance would be where a net operating loss carryforward or similar tax loss or credit carryforward would not be available under the tax law to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. In such a case, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of this new presentation guidance did not impact the Company’s financial position or results of operations.

On January 1, 2014, the Company adopted the other expenses guidance that addresses how health insurers should recognize and classify in their statements of operations fees mandated by the Affordable Care Act. The Affordable Care Act imposes an annual fee on health insurers for each calendar year beginning on or after January 1, 2014. The amendments specify that the liability for the fee should be estimated and recorded in full once the entity provides qualifying health insurance in the applicable calendar year in which the fee is payable with a corresponding deferred cost that is amortized to expense ratably over the calendar year during which it is payable. The Company’s adoption of this guidance impacts the results of our Assurant Health and Assurant Employee Benefits segments. During the third quarter of 2014, the final assessment of the annual insurer fee of $25,723 was paid to the federal government. As a result of this payment, the estimated liability for the mandated fees was reduced to $0. For the nine months ended September 30, 2014, the Company recorded $19,292 of amortization expense related to the deferred costs in underwriting, general and administrative expenses in the consolidated statements of operations, resulting in an ending balance in deferred costs, recorded in other assets on the consolidated balance sheet, of $6,431 as of September 30, 2014.

Not Yet Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance on revenue recognition. The amended guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. Insurance contracts are within the scope of other standards and therefore are specifically excluded from the scope of the amended revenue recognition guidance. The core principle of the amended guidance is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle, the entity applies a five step process outlined in the amended guidance. The amended guidance also includes a cohesive set of disclosure requirements. The amended guidance is effective for interim and annual periods beginning after December 15, 2016 and early adoption is not permitted. Therefore, the Company is required to adopt the guidance on January 1, 2017. An entity can choose to apply the amended guidance using either the full retrospective approach or a modified retrospective approach. The Company is currently evaluating the requirements of the revenue recognition guidance as it relates to its non-insurance contract revenue and the potential impact on the Company’s financial position and results of operations.

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Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

During the nine months ended September 30, 2014, the Company converted the Canadian branch operations of certain U.S. companies to foreign corporate entities. This conversion is an election for U.S. tax classification purposes only and requires the Company to record deferred taxes at local tax rates. As a result of this conversion, the Company recorded a one-time benefit of $20,753, which is reflected in the provision for income taxes line item in the consolidated statements of operations.

During the three months ended March 31, 2014, the Company increased its estimated amount of compensation expenses that are non-tax deductible under the Affordable Care Act. Due to this change in estimate, the Company recorded $5,749 of income tax expense in the Assurant Health segment.

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Earnings Per Common Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

The following table presents net income, the weighted average common shares used in calculating basic earnings per common share (“EPS”) and those used in calculating diluted EPS for each period presented below.

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2014			2013			2014			2013
Numerator
Net income	$	140,297		$	128,788		$	421,152		$	380,091
Deduct dividends paid	(19,449		)	(18,833		)	(58,382		)	(55,777		)
Undistributed earnings	$	120,848		$	109,955		$	362,770		$	324,314
Denominator
Weighted average shares outstanding used in basic   earnings per share	72,182,547			75,544,542			72,561,191			77,662,796
Incremental common shares from:
SARs	—			53,172			—			73,307
PSUs	864,157			859,572			866,171			823,393
ESPPs	—			2,505			—			2,505
Weighted average shares used in diluted earnings per   share calculations	73,046,704			76,459,791			73,427,362			78,562,001
Earnings per common share - Basic
Distributed earnings	$	0.27		$	0.25		$	0.79		$	0.71
Undistributed earnings	1.67			1.45			5.01			4.18
Net income	$	1.94		$	1.70		$	5.80		$	4.89
Earnings per common share - Diluted
Distributed earnings	$	0.27		$	0.25		$	0.79		$	0.71
Undistributed earnings	1.65			1.43			4.95			4.13
Net income	$	1.92		$	1.68		$	5.74		$	4.84

There were no anti-dilutive SARs or PSUs outstanding that were not included in the computation of diluted EPS under the treasury stock method during the three and nine months ended September 30, 2014 and 2013.

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Debt

9 Months Ended

Sep. 30, 2014

Debt Instruments [Abstract]

Debt

Debt

On March 28, 2013, the Company issued two series of senior notes with an aggregate principal amount of $700,000 (the “2013 Senior Notes”). The Company received net proceeds of $698,093 from this transaction, which represents the principal amount less the discount before offering expenses. The discount of $1,907 is being amortized over the life of the 2013 Senior Notes and is included as part of interest expense on the consolidated statements of operations. The first series is $350,000 in principal amount, bears interest at 2.50% per year and is payable in a single installment due March 15, 2018 and was issued at a 0.18% discount. The second series is $350,000 in principal amount, bears interest at 4.00% per year and is payable in a single installment due March 15, 2023 and was issued at a 0.37% discount. Interest on the 2013 Senior Notes is payable semi-annually on March 15 and September 15 of each year. The 2013 Senior Notes are unsecured obligations and rank equally with all of the Company’s other senior unsecured indebtedness. The Company may redeem each series of the 2013 Senior Notes in whole or in part at any time and from time to time before their maturity at the redemption price set forth in the Indenture. The 2013 Senior Notes are registered under the Securities Act of 1933, as amended.

The interest expense incurred related to the 2013 Senior Notes was $5,745 and $5,870 for the three months ended September 30, 2014 and 2013, respectively, and $17,234 and $11,613 for the nine months ended September 30, 2014 and 2013, respectively. There was $948 of accrued interest at both September 30, 2014 and 2013. The Company made interest payments on the 2013 Senior Notes of $11,375 on March 15, 2014 and $11,375 and $10,553 on September 15, 2014 and 2013, respectively.

In February 2004, the Company issued two series of senior notes with an aggregate principal amount of $975,000 (the “2004 Senior Notes”). The Company received proceeds of $971,537 from this transaction, which represents the principal amount less the discount before offering expenses. The discount of $3,463 is being amortized over the life of the 2004 Senior Notes and is included as part of interest expense on the statements of operations. The first series was $500,000 in principal amount, issued at a 0.11% discount, bore interest at 5.63% per year and was repaid on February 18, 2014. 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 2004 Senior Notes is payable semi-annually on February 15 and August 15 of each year. The 2004 Senior Notes are unsecured obligations and rank equally with all of the Company’s other senior unsecured indebtedness. The 2004 Senior Notes are not redeemable prior to maturity. All of the holders of the 2004 Senior Notes exchanged their notes in May 2004 for new notes registered under the Securities Act of 1933, as amended.

The interest expense incurred related to the 2004 Senior Notes was $8,031 and $14,714 for the three months ended September 30, 2014 and 2013, respectively, and $27,383 and $44,795 for the nine months ended September 30, 2014 and 2013, respectively. There was $4,008 and $7,523 of accrued interest at September 30, 2014 and 2013, respectively. The Company made interest payments on the 2004 Senior Notes of $30,094 on February 15, 2014 and 2013 and $16,031 and $30,094 on August 15, 2014 and 2013, respectively.

Credit Facility

On September 16, 2014, the Company entered into a five-year unsecured $400,000 revolving credit agreement (the “2014 Credit Facility”) with a syndicate of banks arranged by JP Morgan Chase Bank, N.A. and Wells Fargo, N.A. The 2014 Credit Facility replaces the Company's prior four-year $350,000 revolving credit facility (the "2011 Credit Facility"), which was entered into on September 21, 2011 and was scheduled to expire in September 2015. The 2011 Credit Facility terminated upon the effectiveness of the 2014 Credit Facility. The 2014 Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and/or letters of credit from a sole issuing bank in an aggregate amount of $400,000 and is available until September 2019, provided the Company is in compliance with all covenants. The 2014 Credit Facility has a sublimit for letters of credit issued thereunder of $50,000. The proceeds of these loans may be used for the Company’s commercial paper program or for general corporate purposes. The Company may increase the total amount available under the 2014 Credit Facility to $525,000 subject to certain conditions. No bank is obligated to provide commitments above their share of the $400,000 facility.

The Company’s commercial paper program requires the Company to maintain liquidity facilities either in an available amount equal to any outstanding notes from the commercial paper program or in an amount sufficient to maintain the ratings assigned to the notes issued from the commercial paper program. The Company’s subsidiaries do not maintain commercial paper or other borrowing facilities at their level. This program is currently backed up by a $400,000 senior revolving credit facility, of which $395,740 was available at September 30, 2014, due to $4,260 of outstanding letters of credit related to this program.

The Company did not use the commercial paper program during the nine months ended September 30, 2014 and 2013 and there were no amounts outstanding relating to the commercial paper program at September 30, 2014 and December 31, 2013. The Company made no borrowings using either the 2011 Credit Facility or the 2014 Credit Facility and no loans are outstanding at September 30, 2014.

The 2014 Credit Facility contains restrictive covenants and requires that the Company maintain certain specified minimum ratios and thresholds. Among others, these covenants include maintaining a maximum debt to capitalization ratio and a minimum consolidated adjusted net worth. At September 30, 2014, the Company was in compliance with all covenants, minimum ratios and thresholds.

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Commitments and Contingencies (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Sep. 30, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Letters of credit outstanding		$ 17,708	$ 17,343
Settlement payment amount	$ 14,000

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Investments

9 Months Ended

Sep. 30, 2014

Investments [Abstract]

Investments

Investments

The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairment (“OTTI”) of our fixed maturity and equity securities as of the dates indicated:

	September 30, 2014
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		OTTI in AOCI (a)
Fixed maturity securities:
United States government and   government agencies and authorities	$	172,994	$	5,053	$	(639	)	$	177,408	$	—
States, municipalities and political   subdivisions	758,072		72,812		(517		)	830,367		—
Foreign governments	610,000		60,062		(1,706		)	668,356		—
Asset-backed	4,061		1,729		(32		)	5,758		1,620
Commercial mortgage-backed	56,527		1,534		—			58,061		—
Residential mortgage-backed	949,236		51,815		(3,446		)	997,605		19,404
Corporate	7,931,922		966,302		(11,770		)	8,886,454		23,163
Total fixed maturity securities	$	10,482,812	$	1,159,307	$	(18,110	)	$	11,624,009	$	44,187
Equity securities:
Common stocks	$	21,129	$	13,743	$	(49	)	$	34,823	$	—
Non-redeemable preferred stocks	437,836		51,485		(2,437		)	486,884		—
Total equity securities	$	458,965	$	65,228	$	(2,486	)	$	521,707	$	—
	December 31, 2013
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		OTTI in AOCI (a)
Fixed maturity securities:
United States government and   government agencies and authorities	$	408,378	$	4,166	$	(1,888	)	$	410,656	$	—
States, municipalities and political   subdivisions	774,233		63,543		(2,624		)	835,152		—
Foreign governments	647,486		35,543		(7,608		)	675,421		—
Asset-backed	4,320		1,910		(56		)	6,174		1,773
Commercial mortgage-backed	57,594		2,850		(82		)	60,362		—
Residential mortgage-backed	919,216		41,905		(13,217		)	947,904		19,525
Corporate	7,709,083		684,776		(37,653		)	8,356,206		19,359
Total fixed maturity securities	$	10,520,310	$	834,693	$	(63,128	)	$	11,291,875	$	40,657
Equity securities:
Common stocks	$	17,890	$	11,352	$	(10	)	$	29,232	$	—
Non-redeemable preferred stocks	399,645		38,880		(9,399		)	429,126		—
Total equity securities	$	417,535	$	50,232	$	(9,409	)	$	458,358	$	—

(a) Represents the amount of OTTI recognized in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

Our states, municipalities and political subdivisions holdings are highly diversified across the U.S. and Puerto Rico, with no individual state’s exposure (including both general obligation and revenue securities) exceeding 0.5% of the overall investment portfolio as of September 30, 2014 and December 31, 2013. At September 30, 2014 and December 31, 2013, the securities include general obligation and revenue bonds issued by states, cities, counties, school districts and similar issuers, including $275,657 and $234,640, respectively, of advance refunded or escrowed-to-maturity bonds (collectively referred to as “pre-refunded bonds”), which are bonds for which an irrevocable trust has been established to fund the remaining payments of principal and interest. As of September 30, 2014 and December 31, 2013, revenue bonds account for 51% and 53% of the holdings, respectively. Excluding pre-refunded revenue bonds, the activities supporting the income streams of the Company’s revenue bonds are across a broad range of sectors, primarily highway, water, airport and marina, higher education, specifically pledged tax revenues, and other miscellaneous sources such as bond banks, finance authorities and appropriations.

The Company’s investments in foreign government fixed maturity securities are held mainly in countries and currencies where the Company has policyholder liabilities, which allow the assets and liabilities to be more appropriately matched. At September 30, 2014, approximately 74%, 11% and 5% of the foreign government securities were held in the Canadian government/provincials and the governments of Brazil and Germany, respectively. At December 31, 2013, approximately 70%, 15% and 6% of the foreign government securities were held in the Canadian government/provincials and the governments of Brazil and Germany, respectively. No other country represented more than 3% of our foreign government securities as of September 30, 2014 and December 31, 2013.

The Company has European investment exposure in its corporate fixed maturity and equity securities of $1,075,379 with an unrealized gain of $108,088 at September 30, 2014 and $1,082,129 with an unrealized gain of $78,126 at December 31, 2013. Approximately 23% and 25% of the corporate European exposure is held in the financial industry at September 30, 2014 and December 31, 2013, respectively. Our largest European country exposure represented approximately 5% and 6% of the fair value of our corporate securities as of September 30, 2014 and December 31, 2013, respectively. Approximately 5% of the fair value of the corporate European securities are pound and euro-denominated and are not hedged to U.S. dollars, but held to support those foreign-denominated liabilities. Our international investments are managed as part of our overall portfolio with the same approach to risk management and focus on diversification.

The cost or amortized cost and fair value of fixed maturity securities at September 30, 2014 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

	Cost or Amortized Cost		Fair Value
Due in one year or less	$	339,714	$	344,017
Due after one year through five years	2,437,561		2,571,729
Due after five years through ten years	2,690,101		2,832,899
Due after ten years	4,005,612		4,813,940
Total	9,472,988		10,562,585
Asset-backed	4,061		5,758
Commercial mortgage-backed	56,527		58,061
Residential mortgage-backed	949,236		997,605
Total	$	10,482,812	$	11,624,009

The following table summarizes the proceeds from sales of available-for-sale securities and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales.

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2014		2013		2014		2013
Proceeds from sales	$	401,627	$	525,996	$	1,403,671	$	2,028,274
Gross realized gains	18,109		9,865		49,696		46,290
Gross realized losses	1,607		12,339		8,174		23,391

The following table sets forth the net realized gains (losses), including OTTI, recognized in the statement of operations as follows:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2014			2013			2014			2013
Net realized gains (losses) related to sales and other:
Fixed maturity securities	$	17,848		$	(2,232	)	$	39,538		$	20,215
Equity securities	(149		)	82			4,988			4,753
Other investments	45			(279		)	(914		)	6,605
Total net realized gains (losses) related to sales and   other	17,744			(2,429		)	43,612			31,573
Net realized losses related to other-than-temporary impairments:
Fixed maturity securities	—			(660		)	(30		)	(767		)
Other investments	—			(542		)	—			(542		)
Total net realized losses related to other-than-temporary impairments	—			(1,202		)	(30		)	(1,309		)
Total net realized gains (losses)	$	17,744		$	(3,631	)	$	43,582		$	30,264

Other-Than-Temporary Impairments

The Company follows the OTTI guidance which requires entities to separate an OTTI of a debt security into two components when there are credit related losses associated with the impaired debt security for which the Company asserts that it does not have the intent to sell, and it is more likely than not that it will not be required to sell before recovery of its cost basis. Under the OTTI guidance, the amount of the OTTI related to a credit loss is recognized in earnings, and the amount of the OTTI related to other, non-credit factors (e.g., interest rates, market conditions, etc.) is recorded as a component of other comprehensive income. In instances where no credit loss exists but the Company intends to sell the security or it is more likely than not that the Company will have to sell the debt security prior to the anticipated recovery, the decline in market value below amortized cost is recognized as an OTTI in earnings. In periods after the recognition of an OTTI on debt securities, the Company accounts for such securities as if they had been purchased on the measurement date of the OTTI at an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in earnings. For debt securities for which OTTI was recognized in earnings, the difference between the new amortized cost basis and the cash flows expected to be collected will be accreted or amortized into net investment income.

There was no OTTI for the three months ended September 30, 2014. For the nine months ended September 30, 2014, the Company recorded $69 of OTTI, of which $30 was related to credit losses and recorded as net OTTI losses recognized in earnings, with the remaining $39 related to all other factors and recorded as an unrealized loss component of AOCI. For the three and nine months ended September 30, 2013, the Company recorded $1,230 and $1,409, respectively, of OTTI, of which $1,202 and $1,309, respectively, was related to credit losses and recorded as net OTTI losses recognized in earnings, with the remaining $28 and $100, respectively, related to all other factors and recorded as an unrealized loss component of AOCI.

The following tables set forth the amount of credit loss impairments recognized within the results of operations on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in AOCI, and the corresponding changes in such amounts.

	Three Months Ended September 30,
	2014			2013
Balance, June 30,	$	39,248		$	93,745
Reductions for increases in cash flows expected to be collected that are recognized over   the remaining life of the security	(506		)	(597		)
Reductions for credit loss impairments previously recognized on securities which   matured, paid down, prepaid or were sold during the period	(1,662		)	(190		)
Balance, September 30,	$	37,080		$	92,958
	Nine Months Ended September 30,
	2014			2013
Balance, January 1,	$	45,278		$	95,589
Additions for credit loss impairments recognized in the current period on securities   previously impaired	30			107
Reductions for increases in cash flows expected to be collected that are recognized over   the remaining life of the security	(3,151		)	(1,465		)
Reductions for credit loss impairments previously recognized on securities which   matured, paid down, prepaid or were sold during the period	(5,077		)	(1,273		)
Balance, September 30,	$	37,080		$	92,958

We regularly monitor our investment portfolio to ensure investments that may be other-than-temporarily impaired are identified in a timely fashion, properly valued, and charged against earnings in the proper period. The determination that a security has incurred an other-than-temporary decline in value requires the judgment of management. Assessment factors include, but are not limited to, the length of time and the extent to which the market value has been less than cost, the financial condition and rating of the issuer, whether any collateral is held, the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery for equity securities and the intent to sell or whether it is more likely than not that the Company will be required to sell for fixed maturity securities. Inherently, there are risks and uncertainties involved in making these judgments. Changes in circumstances and critical assumptions such as a continued weak economy, a more pronounced economic downturn or unforeseen events which affect one or more companies, industry sectors, or countries could result in additional impairments in future periods for other-than-temporary declines in value. Any equity security whose price decline is deemed other-than-temporary is written down to its then current market value with the amount of the impairment reported as a realized loss in that period. The impairment of a fixed maturity security that the Company has the intent to sell or that it is more likely than not that the Company will be required to sell is deemed other-than-temporary and is written down to its market value at the balance sheet date with the amount of the impairment reported as a realized loss in that period. For all other-than-temporarily impaired fixed maturity securities that do not meet either of these two criteria, the Company is required to analyze its ability to recover the amortized cost of the security by calculating the net present value of projected future cash flows. For these other-than-temporarily impaired fixed maturity securities, the net amount recognized in earnings is equal to the difference between the amortized cost of the fixed maturity security and its net present value. 

The Company considers different factors to determine the amount of projected future cash flows and discounting methods for corporate debt and residential and commercial mortgage-backed or asset-backed securities. For corporate debt securities, the split between the credit and non-credit losses is driven principally by assumptions regarding the amount and timing of projected future cash flows. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the security at the date of acquisition. For residential and commercial mortgage-backed and asset-backed securities, cash flow estimates, including prepayment assumptions, are based on data from widely accepted third-party data sources or internal estimates. In addition to prepayment assumptions, cash flow estimates vary based on assumptions regarding the underlying collateral including default rates, recoveries and changes in value. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security prior to impairment at the balance sheet date. The discounted cash flows become the new amortized cost basis of the fixed maturity security.

In periods subsequent to the recognition of an OTTI, the Company generally accretes the discount (or amortizes the reduced premium) into net investment income, up to the non-discounted amount of projected future cash flows, resulting from the reduction in cost basis, based upon the amount and timing of the expected future cash flows over the estimated period of cash flows.

The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities and equity securities at September 30, 2014 and December 31, 2013 were as follows:

	September 30, 2014
	Less than 12 months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed maturity securities:
United States Government and   government agencies and authorities	$	37,746	$	(104	)	$	24,895	$	(535	)	$	62,641	$	(639	)
States, municipalities and political   subdivisions	7,080		(383		)	4,565		(134		)	11,645		(517		)
Foreign governments	43,539		(112		)	46,480		(1,594		)	90,019		(1,706		)
Asset-backed	—		—			1,462		(32		)	1,462		(32		)
Residential mortgage-backed	104,337		(379		)	124,490		(3,067		)	228,827		(3,446		)
Corporate	720,525		(7,245		)	196,815		(4,525		)	917,340		(11,770		)
Total fixed maturity securities	$	913,227	$	(8,223	)	$	398,707	$	(9,887	)	$	1,311,934	$	(18,110	)
Equity securities:
Common stock	$	1,078	$	(46	)	$	193	$	(3	)	$	1,271	$	(49	)
Non-redeemable preferred stocks	58,042		(756		)	31,314		(1,681		)	89,356		(2,437		)
Total equity securities	$	59,120	$	(802	)	$	31,507	$	(1,684	)	$	90,627	$	(2,486	)

	December 31, 2013
	Less than 12 months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed maturity securities:
United States Government and   government agencies and authorities	$	52,615	$	(1,464	)	$	3,514	$	(424	)	$	56,129	$	(1,888	)
States, municipalities and political   subdivisions	30,145		(2,624		)	—		—			30,145		(2,624		)
Foreign governments	217,708		(7,596		)	111		(12		)	217,819		(7,608		)
Asset-backed	—		—			1,442		(56		)	1,442		(56		)
Commercial mortgage-backed	5,036		(82		)	—		—			5,036		(82		)
Residential mortgage-backed	407,808		(11,667		)	31,498		(1,550		)	439,306		(13,217		)
Corporate	1,412,611		(36,848		)	19,291		(805		)	1,431,902		(37,653		)
Total fixed maturity securities	$	2,125,923	$	(60,281	)	$	55,856	$	(2,847	)	$	2,181,779	$	(63,128	)
Equity securities:
Common stock	$	187	$	(10	)	$	—	$	—		$	187	$	(10	)
Non-redeemable preferred stocks	159,723		(8,200		)	11,807		(1,199		)	171,530		(9,399		)
Total equity securities	$	159,910	$	(8,210	)	$	11,807	$	(1,199	)	$	171,717	$	(9,409	)

Total gross unrealized losses represent approximately 2% and 3% of the aggregate fair value of the related securities at September 30, 2014 and December 31, 2013, respectively. Approximately 44% and 94% of these gross unrealized losses have been in a continuous loss position for less than twelve months at September 30, 2014 and December 31, 2013, respectively. The total gross unrealized losses are comprised of 477 and 667 individual securities at September 30, 2014 and December 31, 2013, respectively. In accordance with its policy described above, the Company concluded that for these securities an adjustment to its results of operations for other-than-temporary impairments of the gross unrealized losses was not warranted at September 30, 2014 and December 31, 2013. These conclusions were based on a detailed analysis of the underlying credit and expected cash flows of each security. As of September 30, 2014, the gross unrealized losses that have been in a continuous loss position for twelve months or more were concentrated in the Company’s foreign governments, residential mortgage-backed, and corporate fixed maturity securities, and in non-redeemable preferred stocks. Within the Company’s corporate fixed maturity securities, the majority of the loss position relates to securities in the industrial sector. The industrial sector’s gross unrealized losses of twelve months or more were $1,365, or 30%, of the corporate fixed maturity securities total. The non-redeemable preferred stocks are perpetual preferred securities that have characteristics of both debt and equity securities. To evaluate these securities, we apply an impairment model similar to that used for our fixed maturity securities. As of September 30, 2014, the Company did not intend to sell these securities and it was not more likely than not that the Company would be required to sell them and no underlying cash flow issues were noted. Therefore, the Company did not recognize an OTTI on those perpetual preferred securities that had been in a continuous unrealized loss position for twelve months or more. As of September 30, 2014, the Company did not intend to sell the fixed maturity securities and it was not more likely than not that the Company would be required to sell the securities before the anticipated recovery of their amortized cost basis. The gross unrealized losses are primarily attributable to widening credit spreads associated with an underlying shift in overall credit risk premium.

The Company has entered into commercial mortgage loans, collateralized by the underlying real estate, on properties located throughout the U.S. and Canada. At September 30, 2014, approximately 39% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, New York, and Utah. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to repay their loans. The outstanding balance of commercial mortgage loans ranges in size from $6 to $15,288 at September 30, 2014 and from $9 to $15,574 at December 31, 2013.

Credit quality indicators for commercial mortgage loans are loan-to-value and debt-service coverage ratios. Loan-to-value and debt-service coverage ratios are measures commonly used to assess the credit quality of commercial mortgage loans. The loan-to-value ratio compares the principal amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments and is commonly expressed as a ratio. The loan-to-value and debt-service coverage ratios are generally updated annually in the third quarter.

The following summarizes our loan-to-value and average debt-service coverage ratios as of the dates indicated:

	September 30, 2014
Loan-to-Value	Carrying Value			% of Gross Mortgage Loans		Debt-Service Coverage Ratio
70% and less	$	1,129,193		89.8	%	2.03
71 – 80%	87,488			7.0	%	1.25
81 – 95%	34,694			2.7	%	0.97
Greater than 95%	6,531			0.5	%	0.43
Gross commercial mortgage loans	1,257,906			100	%	1.94
Less valuation allowance	(4,482		)
Net commercial mortgage loans	$	1,253,424
	December 31, 2013
Loan-to-Value	Carrying Value			% of Gross Mortgage Loans		Debt-Service Coverage Ratio
70% and less	$	1,143,200		88.5	%	1.97
71 – 80%	73,603			5.7	%	1.44
81 – 95%	58,752			4.6	%	1.19
Greater than 95%	15,959			1.2	%	0.87
Gross commercial mortgage loans	1,291,514			100	%	1.89
Less valuation allowance	(4,482		)
Net commercial mortgage loans	$	1,287,032

All commercial mortgage loans that are individually impaired have an established mortgage loan valuation allowance for losses. Changing economic conditions affect our valuation of commercial mortgage loans. Changing vacancies and rents are incorporated into the discounted cash flow analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) a commercial mortgage loan valuation allowance for losses. In addition, we continue to monitor the entire commercial mortgage loan portfolio to identify risk. Areas of emphasis are properties that have exposure to specific geographic events, have deteriorating credits or have experienced a reduction in debt-service coverage ratio. Where warranted, we have established or increased a valuation allowance based upon this analysis.

Collateralized Transactions

The Company engages in transactions in which fixed maturity securities, primarily bonds issued by the U.S. government and government agencies and authorities, and U.S. corporations, are loaned to selected broker/dealers. Collateral, greater than or equal to 102% of the fair value of the securities lent, plus accrued interest, is received in the form of cash and cash equivalents held by a custodian bank for the benefit of the Company. The use of cash collateral received is unrestricted. The Company reinvests the cash collateral received, generally in investments of high credit quality that are designated as available-for-sale. The Company monitors the fair value of securities loaned and the collateral received, with additional collateral obtained, as necessary. The Company is subject to the risk of loss to the extent there is a loss on the re-investment of cash collateral.

As of September 30, 2014 and December 31, 2013, our collateral held under securities lending agreements, of which its use is unrestricted, was $95,977 and $95,215, respectively, and is included in the consolidated balance sheets under the collateral held/pledged under securities agreements. Our liability to the borrower for collateral received was $95,973 and $95,206, respectively, and is included in the consolidated balance sheets under obligation under securities agreements. The difference between the collateral held and obligations under securities lending is recorded as an unrealized gain (loss) and is included as part of AOCI. There was one security in an unrealized loss position as of September 30, 2014 and it has been in an unrealized loss position for less than 12 months. All securities were in an unrealized gain position as of December 31, 2013. The Company includes the available-for-sale investments purchased with the cash collateral in its evaluation of other-than-temporary impairments. 

Cash proceeds that the Company receives as collateral for the securities it lends and subsequent repayment of the cash are regarded by the Company as cash flows from financing activities, since the cash received is considered a borrowing. Since the Company reinvests the cash collateral generally in investments that are designated as available-for-sale, the reinvestment is presented as cash flows from investing activities.

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Fair Value Disclosures

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Disclosures

Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures

The fair value measurements and disclosures guidance defines fair value and establishes a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with this guidance, the Company has categorized its recurring basis financial assets and liabilities into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique.

The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The levels of the fair value hierarchy are described below:

• Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access.

• Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset, either directly or indirectly, for substantially the full term of the asset. Level 2 inputs include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active and inputs other than quoted prices that are observable in the marketplace for the asset. The observable inputs are used in valuation models to calculate the fair value for the asset.

• Level 3 inputs are unobservable but are significant to the fair value measurement for the asset, and include situations where there is little, if any, market activity for the asset. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset.

A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.

The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013. The amounts presented below for Collateral held/pledged under securities agreements, Other investments, Cash equivalents, Other assets, Assets and Liabilities held in separate accounts and Other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan, American Security Insurance Company Investment Plan, Assurant Deferred Compensation Plan, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of investments in the Assurant Investment Plan, contingent consideration related to a business combination and other derivatives. The fair value amount and the majority of the associated levels presented for Other investments and Assets and Liabilities held in separate accounts are received directly from third parties.

	September 30, 2014
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies   and authorities	$	177,408	$	—		$	177,408		$	—
State, municipalities and political subdivisions	830,367		—			830,367			—
Foreign governments	668,356		705			667,651			—
Asset-backed	5,758		—			5,758			—
Commercial mortgage-backed	58,061		—			57,608			453
Residential mortgage-backed	997,605		—			997,605			—
Corporate	8,886,454		—			8,771,973			114,481
Equity securities:
Common stocks	34,823		34,139			684			—
Non-redeemable preferred stocks	486,884		—			482,839			4,045
Short-term investments	465,295		392,642		b	72,653		c	—
Collateral held/pledged under securities agreements	74,976		66,971		b	8,005		c	—
Other investments	268,842		58,021		a	208,234		c	2,587		d
Cash equivalents	821,233		818,528		b	2,705		c	—
Other assets	1,735		—			755		f	980		e
Assets held in separate accounts	1,820,241		1,639,251		a	180,990		c	—
Total financial assets	$	15,598,038	$	3,010,257		$	12,465,235		$	122,546
Financial Liabilities
Other liabilities	$	86,155	$	58,021	a	$	34	f	$	28,100	f
Liabilities related to separate accounts	1,820,241		1,639,251		a	180,990		c	—
Total financial liabilities	$	1,906,396	$	1,697,272		$	181,024		$	28,100

	December 31, 2013
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies   and authorities	$	410,656	$	—		$	410,656		$	—
State, municipalities and political subdivisions	835,152		—			812,495			22,657
Foreign governments	675,421		789			657,775			16,857
Asset-backed	6,174		—			6,174			—
Commercial mortgage-backed	60,362		—			59,764			598
Residential mortgage-backed	947,904		—			943,737			4,167
Corporate	8,356,206		—			8,240,862			115,344
Equity securities:
Common stocks	29,232		28,548			684			—
Non-redeemable preferred stocks	429,126		—			421,616			7,510
Short-term investments	470,458		273,518		b	196,940		c	—
Collateral held/pledged under securities agreements	74,212		67,202		b	7,010		c	—
Other investments	246,748		66,659		a	175,918		c	4,171		d
Cash equivalents	1,233,701		967,372		b	266,329		c	—
Other assets	3,726		—			1,235		f	2,491		e
Assets held in separate accounts	1,887,988		1,696,811		a	191,177		c	—
Total financial assets	$	15,667,066	$	3,100,899		$	12,392,372		$	173,795
Financial Liabilities
Other liabilities	$	106,992	$	54,794	a	$	31,868	g	$	20,330	f
Liabilities related to separate accounts	1,887,988		1,696,811		a	191,177		c	—
Total financial liabilities	$	1,994,980	$	1,751,605		$	223,045		$	20,330

a. Mainly includes mutual funds.

b. Mainly includes money market funds.

c. Mainly includes fixed maturity securities.

d. Mainly includes fixed maturity securities and other derivatives.

e. Mainly includes the Consumer Price Index Cap Derivatives (“CPI Caps”).

f. Mainly includes other derivatives.

g. Mainly includes contingent consideration liability related to a business combination.

There were no transfers between Level 1 and Level 2 financial assets during either period. However, there were transfers between Level 2 and Level 3 financial assets during the periods, which are reflected in the “Transfers in” and “Transfers out” columns below. Transfers between Level 2 and Level 3 most commonly occur from changes in the availability of observable market information and re-evaluation of the observability of pricing inputs. Any remaining unpriced securities are submitted to independent brokers who provide non-binding broker quotes or are priced by other qualified sources.

The following tables summarize the change in balance sheet carrying value associated with Level 3 financial assets and liabilities carried at fair value during the three and nine months ended September 30, 2014 and 2013:

	Three Months Ended September 30, 2014
	Balance, beginning  of period			Total gains (losses) (realized/ unrealized) included in earnings (1)			Net unrealized (losses) gains  included in other comprehensive income (2)			Purchases		Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
Commercial mortgage-   backed	$	503		$	—		$	(5	)	$	—	$	(45	)	$	—	$	—		$	453
Corporate	116,827			1,684			(1,840		)	9,637		(3,325		)	1,515		(10,017		)	114,481
Equity Securities
Non-redeemable preferred   stocks	4,099			(1		)	(53		)	—		—			—		—			4,045
Other investments	2,615			(437		)	2			439		(32		)	—		—			2,587
Other assets	2,268			(1,288		)	—			—		—			—		—			980
Financial Liabilities
Other liabilities	(23,160		)	(4,940		)	—			—		—			—		—			(28,100		)
Total level 3 assets and   liabilities	$	103,152		$	(4,982	)	$	(1,896	)	$	10,076	$	(3,402	)	$	1,515	$	(10,017	)	$	94,446

	Three Months Ended September 30, 2013
	Balance, beginning of period			Total (losses) gains (realized/ unrealized) included in earnings  (1)			Net unrealized (losses) gains included in other comprehensive income (2)			Purchases			Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
United States Government   and government agencies   and authorities	$	84		$	—		$	—		$	—		$	(84	)	$	—	$	—		$	—
Foreign governments	21,032			(2		)	(433		)	—			—			—		—			20,597
Commercial mortgage-   backed	683			—			—			—			(42		)	—		—			641
Residential mortgage-   backed	20,326			(18		)	64			—			(583		)	—		(9,004		)	10,785
Corporate	133,623			109			(2,070		)	—			(1,543		)	—		(6,965		)	123,154
Equity Securities
Non-redeemable preferred   stocks	2,301			—			289			—			—			3,527		—			6,117
Other investments	10,601			85			693			—			(636		)	—		—			10,743
Other assets	2,963			(217		)	—			—			—			—		—			2,746
Financial Liabilities
Other liabilities	(1,590		)	(589		)	—			(1,897		)	—			—		—			(4,076		)
Total level 3 assets and   liabilities	$	190,023		$	(632	)	$	(1,457	)	$	(1,897	)	$	(2,888	)	$	3,527	$	(15,969	)	$	170,707

	Nine Months Ended September 30, 2014
	Balance, beginning of period			Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized gains (losses) included in other comprehensive income (2)			Purchases			Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
States, municipalities and   political subdivisions	$	22,657		$	—		$	—		$	—		$	—		$	—	$	(22,657	)	$	—
Foreign governments	16,857			(2		)	18			—			—			—		(16,873		)	—
Commercial mortgage-   backed	598			—			(14		)	—			(131		)	—		—			453
Residential mortgage-   backed	4,167			—			—			—			—			—		(4,167		)	—
Corporate	115,344			1,739			2,286			19,578			(8,608		)	1,515		(17,373		)	114,481
Equity Securities
Non-redeemable preferred   stocks	7,510			327			(186		)	—			(1,830		)	—		(1,776		)	4,045
Other investments	4,171			(1,952		)	11			439			(82		)	—		—			2,587
Other assets	2,491			(1,511		)	—			—			—			—		—			980
Financial Liabilities
Other liabilities	(20,330		)	(3,770		)	—			(4,000		)	—			—		—			(28,100		)
Total level 3 assets and   liabilities	$	153,465		$	(5,169	)	$	2,115		$	16,017		$	(10,651	)	$	1,515	$	(62,846	)	$	94,446

	Nine Months Ended September 30, 2013
	Balance, beginning of period			Total (losses) gains (realized/ unrealized) included in earnings  (1)			Net unrealized (losses) gains included in other comprehensive income (2)			Purchases			Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
United States Government   and government agencies   and authorities	$	4,175		$	—		$	(3	)	$	—		$	(4,172	)	$	—	$	—		$	—
Foreign governments	23,097			(4		)	(2,496		)	—			—			—		—			20,597
Commercial mortgage-   backed	1,774			20			(30		)	—			(1,123		)	—		—			641
Residential mortgage-   backed	8,211			(31		)	(1,145		)	29,938			(1,326		)	—		(24,862		)	10,785
Corporate	158,003			(390		)	(4,000		)	5,325			(25,045		)	4,997		(15,736		)	123,154
Equity Securities
Non-redeemable preferred   stocks	14			12			309			4,308			(2,040		)	3,527		(13		)	6,117
Other investments	11,327			(813		)	1,275			8			(1,054		)	—		—			10,743
Other assets	5,886			(3,140		)	—			—			—			—		—			2,746
Financial Liabilities
Other liabilities	(2,560		)	381			—			(1,897		)	—			—		—			(4,076		)
Total level 3 assets and   liabilities	$	209,927		$	(3,965	)	$	(6,090	)	$	37,682		$	(34,760	)	$	8,524	$	(40,611	)	$	170,707

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

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

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

Three different valuation techniques can be used in determining fair value for financial assets and liabilities: the market, income or cost approaches. The three valuation techniques described in the fair value measurements and disclosures guidance are consistent with generally accepted valuation methodologies. The market approach valuation techniques use prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. When possible, quoted prices (unadjusted) in active markets are used as of the period-end date (such as for mutual funds and money market funds). Otherwise, valuation techniques consistent with the market approach including matrix pricing and comparables are used. Matrix pricing is a mathematical technique employed principally to value debt securities without relying exclusively on quoted prices for those securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Market approach valuation techniques often use market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering both qualitative and quantitative factors specific to the measurement.

Income approach valuation techniques convert future amounts, such as cash flows or earnings, to a single present amount, or a discounted amount. These techniques rely on current market expectations of future amounts as of the period-end date. Examples of income approach valuation techniques include present value techniques, option-pricing models, binomial or lattice models that incorporate present value techniques and the multi-period excess earnings method.

Cost approach valuation techniques are based upon the amount that would be required to replace the service capacity of an asset at the period-end date, or the current replacement cost. That is, from the perspective of a market participant (seller), the price that would be received for the asset is determined based on the cost to a market participant (buyer) to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence.

While not all three approaches are applicable to all financial assets or liabilities, where appropriate, one or more valuation techniques may be used. For all the classes of financial assets and liabilities included in the above hierarchy, excluding the CPI Caps and certain privately placed corporate bonds, the market valuation technique is generally used. For certain privately placed corporate bonds, the CPI Caps, and certain derivatives, the income valuation technique is generally used. For the periods ended September 30, 2014 and December 31, 2013, the application of the valuation technique applied to the Company’s classes of financial assets and liabilities has been consistent.

Level 1 Securities

The Company’s investments and liabilities classified as Level 1 as of September 30, 2014 and December 31, 2013, consisted of mutual funds and money market funds, foreign government fixed maturities and common stocks that are publicly listed and/or actively traded in an established market.

Level 2 Securities

The Company’s Level 2 securities are valued using various observable market inputs obtained from a pricing service. The pricing service prepares estimates of fair value measurements for our Level 2 securities using proprietary valuation models based on techniques such as matrix pricing which include observable market inputs. The fair value measurements and disclosures guidance defines observable market inputs as the assumptions market participants would use in pricing the asset or liability developed on market data obtained from sources independent of the Company. The extent of the use of each observable market input for a security depends on the type of security and the market conditions at the balance sheet date. Depending on the security, the priority of the use of observable market inputs may change as some observable market inputs may not be relevant or additional inputs may be necessary. The following observable market inputs (“standard inputs”), listed in the approximate order of priority, are utilized in the pricing evaluation of Level 2 securities: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research data. Further details for Level 2 investment types follow:

United States Government and government agencies and authorities: U.S. government and government agencies and authorities securities are priced by our pricing service utilizing standard inputs. Included in this category are U.S. Treasury securities which are priced using vendor trading platform data in addition to the standard inputs.

State, municipalities and political subdivisions: State, municipalities and political subdivisions securities are priced by our pricing service utilizing material event notices and new issue data inputs in addition to the standard inputs.

Foreign governments: Foreign government securities are primarily fixed maturity securities denominated in Canadian dollars which are priced by our pricing service utilizing standard inputs. The pricing service also evaluates each security based on relevant market information including relevant credit information, perceived market movements and sector news.

Commercial mortgage-backed, residential mortgage-backed and asset-backed: Commercial mortgage-backed, residential mortgage-backed and asset-backed securities are priced by our pricing service utilizing monthly payment information and collateral performance information in addition to the standard inputs. Additionally, commercial mortgage-backed securities and asset-backed securities utilize new issue data while residential mortgage-backed securities utilize vendor trading platform data.

Corporate: Corporate securities are priced by our pricing service utilizing standard inputs. Non-investment grade securities within this category are priced by our pricing service utilizing observations of equity and credit default swap curves related to the issuer in addition to the standard inputs. Certain privately placed corporate bonds are priced by a non-pricing service source using a model with observable inputs including, but not limited to, the credit rating, credit spreads, sector add-ons, and issuer specific add-ons. 

Non-redeemable preferred stocks: Non-redeemable preferred stocks are priced by our pricing service utilizing observations of equity and credit default swap curves related to the issuer in addition to the standard inputs.

Short-term investments, collateral held/pledged under securities agreements, other investments, cash equivalents, and assets/liabilities held in separate accounts: To price the fixed maturity securities in these categories, the pricing service utilizes the standard inputs.

Other liabilities: The contingent consideration liability related to a business combination is valued at the contractual amount stated in the purchase agreement plus accrued interest. The contractual amount plus interest represents the fair value and is a market observable input due to the fact that the amount is specifically stated in the agreement and there is a short time frame (less than three months) for determining whether the payment will be made or not.

Valuation models used by the pricing service can change period to period, depending on the appropriate observable inputs that are available at the balance sheet date to price a security. When market observable inputs are unavailable to the pricing service, the remaining unpriced securities are submitted to independent brokers who provide non-binding broker quotes or are priced by other qualified sources. If the Company cannot corroborate the non-binding broker quotes with Level 2 inputs, these securities are categorized as Level 3 securities.

Level 3 Securities

The Company’s investments classified as Level 3 as of September 30, 2014 and December 31, 2013 consisted of fixed maturity and equity securities and derivatives. All of the Level 3 fixed maturity and equity securities are priced using non-binding broker quotes which cannot be corroborated with Level 2 inputs. Of our total Level 3 fixed maturity and equity securities, $65,811 and $70,244 were priced by a pricing service using single broker quotes due to insufficient information to provide an evaluated price as of September 30, 2014 and December 31, 2013, respectively. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The remaining $53,626 and $97,219 were priced internally using independent and non-binding broker quotes as of September 30, 2014 and December 31, 2013, respectively. The inputs factoring into the broker quotes include trades in the actual bond being priced, trades of comparable bonds, quality of the issuer, optionality, structure and liquidity. Significant changes in interest rates, issuer credit, liquidity, and overall market conditions would result in a significantly lower or higher broker quote. The prices received from both the pricing service and internally are reviewed for reasonableness by management and if necessary, management works with the pricing service or broker to further understand how they developed their price. Further details on Level 3 derivative investment types follow:

Other investments and other liabilities: Swaptions are priced using a Black-Scholes pricing model incorporating third-party market data, including swap volatility data. Credit default swaps are priced using non-binding quotes provided by market makers or broker-dealers who are recognized as market participants. Inputs factored into the non-binding quotes include trades in the actual credit default swap which is being priced, trades in comparable credit default swaps, quality of the issuer, structure and liquidity. The net option related to the investment in Iké is valued using an income approach; specifically, a Monte Carlo simulation option pricing model. The inputs to the model include, but are not limited to, the projected normalized earnings before interest, tax, depreciation, and amortization (EBITDA) and free cash flow for the underlying asset, the discount rate, and the volatility of and the correlation between the normalized EBITDA and the value of the underlying asset. Significant increases (decreases) in the projected normalized EBITDA relative to the value of the underlying asset in isolation would result in a significantly higher (lower) fair value.

Other assets: A non-pricing service source prices the CPI Cap derivatives using a model with inputs including, but not limited to, the time to expiration, the notional amount, the strike price, the forward rate, implied volatility and the discount rate.

Management evaluates the following factors in order to determine whether the market for a financial asset is inactive. The factors include, but are not limited to:

• There are few recent transactions,

• Little information is released publicly,

• The available prices vary significantly over time or among market participants,

• The prices are stale (i.e., not current), and

• The magnitude of the bid-ask spread. 

Illiquidity did not have a material impact in the fair value determination of the Company’s financial assets.

The Company generally obtains one price for each financial asset. The Company performs a monthly analysis to assess if the evaluated prices represent a reasonable estimate of their fair value. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. Examples of procedures performed include, but are not limited to, initial and on-going review of pricing service methodologies, review of the prices received from the pricing service, review of pricing statistics and trends, and comparison of prices for certain securities with two different appropriate price sources for reasonableness. Following this analysis, the Company generally uses the best estimate of fair value based upon all available inputs. On infrequent occasions, a non-pricing service source may be more familiar with the market activity for a particular security than the pricing service. In these cases the price used is taken from the non-pricing service source. The pricing service provides information to indicate which securities were priced using market observable inputs so that the Company can properly categorize our financial assets in the fair value hierarchy.

For the net option, the Company will perform a periodic analysis to assess if the evaluated price represents a reasonable estimate of the fair value for the financial liability. This process will involve quantitative and qualitative analysis overseen by finance and accounting professionals. Examples of procedures to be performed include, but are not limited to, initial and on-going review of the pricing methodology and review of the projection for the underlying asset including the probability distribution of possible scenarios.

Disclosures for Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis

The Company also measures the fair value of certain assets on a non-recurring basis, generally on an annual basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include commercial mortgage loans, goodwill and finite-lived intangible assets.

The Company utilizes both the income and market valuation approaches to measure the fair value of its reporting units when required. Under the income approach, the Company determined the fair value of the reporting units considering distributable earnings, which were estimated from operating plans. The resulting cash flows were then discounted using a market participant weighted average cost of capital estimated for the reporting units. After discounting the future discrete earnings to their present value, the Company estimated the terminal value attributable to the years beyond the discrete operating plan period. The discounted terminal value was then added to the aggregate discounted distributable earnings from the discrete operating plan period to estimate the fair value of the reporting units. Under the market approach, the Company derived the fair value of the reporting units based on various financial multiples, including but not limited to: price to tangible book value of equity, price to estimated 2014 earnings and price to estimated 2014 earnings, which were estimated based on publicly available data related to comparable guideline companies. In addition, financial multiples were also estimated from publicly available purchase price data for acquisitions of companies operating in the insurance industry. The estimated fair value of the reporting units was more heavily weighted towards the income approach because in the current economic environment the earnings capacity of a business is generally considered the most important factor in the valuation of a business enterprise. This fair value determination was categorized as Level 3 (unobservable) in the fair value hierarchy.

Fair Value of Financial Instruments Disclosures

The financial instruments guidance requires disclosure of fair value information about financial instruments, as defined therein, for which it is practicable to estimate such fair value. Therefore, it requires fair value disclosure for financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets. However, this guidance excludes certain financial instruments, including those related to insurance contracts and those accounted for under the equity method and joint ventures guidance (such as real estate joint ventures).

For the financial instruments included within the following financial assets and financial liabilities, the carrying value in the consolidated balance sheets equals or approximates fair value. Please refer to the Fair Value Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures section above for more information on the financial instruments included within the following financial assets and financial liabilities and the methods and assumptions used to estimate fair value:

• Cash and cash equivalents

• Fixed maturity securities

• Equity securities

• Short-term investments

• Collateral held/pledged under securities agreements

• Other investments

• Other assets

• Assets held in separate accounts

• Other liabilities

• Liabilities related to separate accounts

In estimating the fair value of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets, the Company used the following methods and assumptions:

Commercial mortgage loans: the fair values of mortgage loans are estimated using discounted cash flow models. The model inputs include mortgage amortization schedules and loan provisions, an internally developed credit spread based on the credit risk associated with the borrower and the U.S. Treasury spot curve. Mortgage loans with similar characteristics are aggregated for purposes of the calculations.

Policy loans: the carrying value of policy loans reported in the consolidated balance sheets approximates fair value.

Policy reserves under investment products: the fair values for the Company’s policy reserves under investment products are determined using discounted cash flow analysis. Key inputs to the valuation include projections of policy cash flows, reserve run-off, market yields and risk margins.

Funds held under reinsurance: the carrying value reported approximates fair value due to the short maturity of the instruments.

Debt: the fair value of debt is based upon matrix pricing performed by the pricing service utilizing the standard inputs.

Obligation under securities agreements: obligation under securities agreements is reported at the amount of cash received from the selected broker/dealers.

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

	September 30, 2014
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	1,253,424	$	1,434,289	$	—	$	—	$	1,434,289
Policy loans	48,979		48,979		48,979		—		—
Total financial assets	$	1,302,403	$	1,483,268	$	48,979	$	—	$	1,434,289
Financial Liabilities
Policy reserves under investment products   (Individual and group annuities, subject   to discretionary withdrawal) (1)	$	766,039	$	787,947	$	—	$	—	$	787,947
Funds withheld under reinsurance	78,707		78,707		78,707		—		—
Debt	1,171,005		1,273,705		—		1,273,705		—
Obligations under securities agreements	95,973		95,973		95,973		—		—
Total financial liabilities	$	2,111,724	$	2,236,332	$	174,680	$	1,273,705	$	787,947
	December 31, 2013
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	1,287,032	$	1,444,974	$	—	$	—	$	1,444,974
Policy loans	51,678		51,678		51,678		—		—
Total financial assets	$	1,338,710	$	1,496,652	$	51,678	$	—	$	1,444,974
Financial Liabilities
Policy reserves under investment products   (Individual and group annuities, subject   to discretionary withdrawal) (1)	$	809,628	$	808,734	—		—		$	808,734
Funds withheld under reinsurance	76,778		76,778		76,778		—		—
Debt	1,638,118		1,656,588		—		1,656,588		—
Obligations under securities agreements	95,206		95,206		95,206		—		—
Total financial liabilities	$	2,619,730	$	2,637,306	$	171,984	$	1,656,588	$	808,734

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

Reinsurance Recoverables Credit Disclosures

A key credit quality indicator for reinsurance is the A.M. Best financial strength ratings of the reinsurer. The A.M. Best ratings are an independent opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. The A.M. Best ratings for new reinsurance agreements where there is material credit exposure are reviewed at the time of execution. The A.M. Best ratings for existing reinsurance agreements are reviewed on a periodic basis, at least annually. The A.M. Best ratings have not changed significantly since December 31, 2013.

An allowance for doubtful accounts for reinsurance recoverables is recorded on the basis of periodic evaluations of balances due from reinsurers (net of collateral), reinsurer solvency, management’s experience and current economic conditions. The Company carries an allowance for doubtful accounts for reinsurance recoverables of $10,820 as of September 30, 2014 and December 31, 2013.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2014

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

Certain amounts included in the consolidated statements of comprehensive income are net of reclassification adjustments. The following tables summarize those reclassification adjustments (net of taxes):

	Three Months Ended September 30, 2014
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI			Pension under- funding			Accumulated other comprehensive income
Balance at June 30, 2014	$	(18,937	)	$	837,038		$	28,811		$	(82,840	)	$	764,072
Other comprehensive loss before   reclassifications	(54,264		)	(60,219		)	(1,193		)	—			(115,676		)
Amounts reclassified from accumulated other   comprehensive income	—			8,602			1,104			1,644			11,350
Net current-period other comprehensive (loss)   income	(54,264		)	(51,617		)	(89		)	1,644			(104,326		)
Balance at September 30, 2014	$	(73,201	)	$	785,421		$	28,722		$	(81,196	)	$	659,746
	Three Months Ended September 30, 2013
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI			Pension under- funding			Accumulated other comprehensive income
Balance at June 30, 2013	$	(27,349	)	$	593,630		$	25,558		$	(171,331	)	$	420,508
Other comprehensive income (loss) before   reclassifications	5,578			(45,212		)	279			—			(39,355		)
Amounts reclassified from accumulated other   comprehensive income	—			1,907			—			3,246			5,153
Net current-period other comprehensive income   (loss)	5,578			(43,305		)	279			3,246			(34,202		)
Balance at September 30, 2013	$	(21,771	)	$	550,325		$	25,837		$	(168,085	)	$	386,306
	Nine Months Ended September 30, 2014
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI			Pension under- funding			Accumulated other comprehensive income
Balance at December 31, 2013	$	(38,767	)	$	526,071		$	26,427		$	(86,901	)	$	426,830
Other comprehensive (loss) income before   reclassifications	(34,434		)	235,940			1,211			—			202,717
Amounts reclassified from accumulated other   comprehensive income	—			23,410			1,084			5,705			30,199
Net current-period other comprehensive (loss)   income	(34,434		)	259,350			2,295			5,705			232,916
Balance at September 30, 2014	$	(73,201	)	$	785,421		$	28,722		$	(81,196	)	$	659,746

	Nine Months Ended September 30, 2013
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI		Pension under- funding			Accumulated other comprehensive income
Balance at December 31, 2012	$	6,882		$	981,879		$	23,861	$	(182,219	)	$	830,403
Other comprehensive (loss) income before   reclassifications	(28,653		)	(449,116		)	1,952		—			(475,817		)
Amounts reclassified from accumulated other   comprehensive income	—			17,562			24		14,134			31,720
Net current-period other comprehensive (loss)   income	(28,653		)	(431,554		)	1,976		14,134			(444,097		)
Balance at September 30, 2013	$	(21,771	)	$	550,325		$	25,837	$	(168,085	)	$	386,306

The following tables summarize the reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2014 and 2013:

Details about accumulated other comprehensive income components	Amount reclassified from accumulated other comprehensive income						Affected line item in the statement where net income is presented
	Three Months Ended September 30,
	2014			2013
Unrealized gains on securities	$	13,234		$	2,934		Net realized gains on investments, excluding other-than-temporary impairment losses
	(4,632		)	(1,027		)	Provision for income taxes
	$	8,602		$	1,907		Net of tax
OTTI	$	1,697		$	—		Portion of net loss recognized in other comprehensive income, before taxes
	(593		)	—			Provision for income taxes
	$	1,104		$	—		Net of tax
Amortization of pension and   postretirement unrecognized net   periodic benefit cost:
Amortization of prior service cost	$	(24	)	$	12		(1)
Amortization of net loss	2,553			4,983			(1)
	2,529			4,995			Total before tax
	(885		)	(1,749		)	Provision for income taxes
	$	1,644		$	3,246		Net of tax
Total reclassifications for the period	$	11,350		$	5,153		Net of tax

Details about accumulated other comprehensive income components	Amount reclassified from accumulated other comprehensive income						Affected line item in the statement where net income is presented
	Nine Months Ended September 30,
	2014			2013
Unrealized gains on securities	$	36,015		$	27,019		Net realized gains on investments, excluding other-than-temporary impairment losses
	(12,605		)	(9,457		)	Provision for income taxes
	$	23,410		$	17,562		Net of tax
OTTI	$	1,667		$	37		Portion of net loss recognized in other comprehensive income, before taxes
	(583		)	(13		)	Provision for income taxes
	$	1,084		$	24		Net of tax
Amortization of pension and   postretirement unrecognized net   periodic benefit cost:
Amortization of prior service cost	$	(74	)	$	(88	)	(1)
Amortization of net loss	8,853			21,833			(1)
	8,779			21,745			Total before tax
	(3,074		)	(7,611		)	Provision for income taxes
	$	5,705		$	14,134		Net of tax
Total reclassifications for the period	$	30,199		$	31,720		Net of tax

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 12 - Retirement and Other Employee Benefits for additional information.

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Subsequent Events (Details) In Thousands, unless otherwise specified				0 Months Ended
	Sep. 30, 2014 USD ($)	Dec. 31, 2013 USD ($)	Sep. 30, 2014 American Reliable Insurance Company USD ($)	Oct. 31, 2014 Subsequent Event CWI Group USD ($)	Oct. 31, 2014 Subsequent Event CWI Group EUR (€)	Oct. 16, 2014 Subsequent Event American Reliable Insurance Company USD ($)
Subsequent Event [Line Items]
Proceeds from sale of subsidiary						$ 114,000
Business combination, purchase price				71,000	56,000
Assets, excluding goodwill			400,000
Liabilities	$ 25,330,566	$ 24,881,210	$ 285,000

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Recent Accounting Pronouncements (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Mandated fees under Affordable Care Act	$ 25,723
Liability recorded for mandated fees under Affordable Care Act	0
Deferred costs under Affordable Care Act	6,431
Affordable Care Act
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amortization of deferred costs	$ 19,292

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Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net realized gains (losses) on investments, excluding other-than-temporary impairment losses	$ 17,744		$ (2,429)		$ 43,612		$ 31,573
Provision for income taxes	(84,454)		(65,183)		(232,639)		(231,071)
Net income	140,297		128,788		421,152		380,091
Portion of net loss recognized in other comprehensive income, before taxes	0		28		39		100
Income before provision for income taxes	224,751		193,971		653,791		611,162
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	11,350		5,153		30,199		31,720
Unrealized gains on securities | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net realized gains (losses) on investments, excluding other-than-temporary impairment losses	13,234		2,934		36,015		27,019
Provision for income taxes	(4,632)		(1,027)		(12,605)		(9,457)
Net income	8,602		1,907		23,410		17,562
OTTI | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Provision for income taxes	(593)		0		(583)		(13)
Net income	1,104		0		1,084		24
Portion of net loss recognized in other comprehensive income, before taxes	1,697		0		1,667		37
Pension under- funding | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Provision for income taxes	(885)		(1,749)		(3,074)		(7,611)
Net income	1,644		3,246		5,705		14,134
Amortization of prior service cost	(24)	[1]	12	[1]	(74)	[1]	(88)	[1]
Amortization of net loss	2,553	[1]	4,983	[1]	8,853	[1]	21,833	[1]
Income before provision for income taxes	$ 2,529		$ 4,995		$ 8,779		$ 21,745

[1] These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 12 - Retirement and Other Employee Benefits for additional information.

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Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has five reportable segments, which are defined based on the nature of the products and services offered: Assurant Solutions, Assurant Specialty Property, Assurant Health, Assurant Employee Benefits, and Corporate & Other. Assurant Solutions provides mobile device protection, debt protection administration, credit-related insurance, warranties and service contracts and pre-funded funeral insurance. Assurant Specialty Property provides lender-placed homeowners insurance, property, appraisal, preservation and valuation services, renters insurance and related products and manufactured housing homeowners insurance. Assurant Health provides individual health and small employer group health insurance. Assurant Employee Benefits primarily provides group dental insurance, group disability insurance and group life insurance. Corporate & Other includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments and interest income earned from short-term investments held. Corporate & Other also includes the amortization of deferred gains associated with the sales of Fortis Financial Group and Long-Term Care through reinsurance agreements.

The Company evaluates performance of the operating segments based on segment income (loss) after-tax excluding realized gains (losses) on investments. The Company determines reportable segments in a manner consistent with the way the Chief Operating Decision Maker makes operating decisions and assesses performance.

The following tables summarize selected financial information by segment:

	Three Months Ended September 30, 2014
	Solutions		Specialty Property		Health			Employee Benefits		Corporate & Other			Consolidated
Revenues
Net earned premiums	$	812,512	$	654,889	$	526,705		$	263,703	$	—		$	2,257,809
Net investment income	95,898		24,574		8,312			28,594		4,631			162,009
Net realized gains on investments	—		—		—			—		17,744			17,744
Amortization of deferred gain on disposal of businesses	—		—		—			—		3,645			3,645
Fees and other income	156,807		87,271		10,593			6,305		305			261,281
Total revenues	1,065,217		766,734		545,610			298,602		26,325			2,702,488
Benefits, losses and expenses
Policyholder benefits	257,000		258,344		430,499			177,850		—			1,123,693
Amortization of deferred acquisition   costs and value of business acquired	287,110		90,356		1,511			7,732		—			386,709
Underwriting, general and   administrative expenses	442,087		258,589		123,176			92,586		37,121			953,559
Interest expense	—		—		—			—		13,776			13,776
Total benefits, losses and   expenses	986,197		607,289		555,186			278,168		50,897			2,477,737
Segment income (loss) before   provision (benefit) for income tax	79,020		159,445		(9,576		)	20,434		(24,572		)	224,751
Provision (benefit) for income taxes	27,171		54,716		7,813			7,333		(12,579		)	84,454
Segment income (loss) after tax	$	51,849	$	104,729	$	(17,389	)	$	13,101	$	(11,993	)
Net income													$	140,297

	Three Months Ended September 30, 2013
	Solutions		Specialty Property		Health		Employee Benefits		Corporate & Other			Consolidated
Revenues
Net earned premiums	$	684,973	$	612,165	$	398,000	$	252,293	$	—		$	1,947,431
Net investment income	92,845		23,819		9,168		28,516		4,861			159,209
Net realized losses on investments	—		—		—		—		(3,631		)	(3,631		)
Amortization of deferred gain on   disposal of businesses	—		—		—		—		4,074			4,074
Fees and other income	107,908		29,786		7,630		6,032		211			151,567
Total revenues	885,726		665,770		414,798		286,841		5,515			2,258,650
Benefits, losses and expenses
Policyholder benefits	226,263		228,508		295,534		183,527		—			933,832
Amortization of deferred acquisition   costs and value of business acquired	286,343		79,361		266		6,780		—			372,750
Underwriting, general and   administrative expenses	325,537		181,172		107,086		87,329		36,202			737,326
Interest expense	—		—		—		—		20,771			20,771
Total benefits, losses and   expenses	838,143		489,041		402,886		277,636		56,973			2,064,679
Segment income (loss) before   provision (benefit) for income tax	47,583		176,729		11,912		9,205		(51,458		)	193,971
Provision (benefit) for income taxes	11,374		61,679		5,351		3,056		(16,277		)	65,183
Segment income (loss) after tax	$	36,209	$	115,050	$	6,561	$	6,149	$	(35,181	)
Net income												$	128,788

	Nine Months Ended September 30, 2014
	Solutions		Specialty Property		Health			Employee Benefits		Corporate & Other			Consolidated
Revenues
Net earned premiums	$	2,335,498	$	1,911,589	$	1,454,726		$	788,192	$	—		$	6,490,005
Net investment income	288,146		77,750		27,538			89,649		14,492			497,575
Net realized gains on investments	—		—		—			—		43,582			43,582
Amortization of deferred gain on   disposal of businesses	—		—		—			—		10,949			10,949
Fees and other income	461,268		209,035		27,787			18,332		428			716,850
Total revenues	3,084,912		2,198,374		1,510,051			896,173		69,451			7,758,961
Benefits, losses and expenses
Policyholder benefits	781,908		830,073		1,136,113			533,244		—			3,281,338
Amortization of deferred acquisition   costs and value of business acquired	824,023		249,189		1,759			23,109		—			1,098,080
Underwriting, general and   administrative expenses	1,238,830		708,837		366,585			274,534		92,349			2,681,135
Interest expense	—		—		—			—		44,617			44,617
Total benefits, losses and   expenses	2,844,761		1,788,099		1,504,457			830,887		136,966			7,105,170
Segment income (loss) before   provision (benefit) for income tax	240,151		410,275		5,594			65,286		(67,515		)	653,791
Provision (benefit) for income taxes	79,300		139,495		32,554			23,838		(42,548		)	232,639
Segment income (loss) after tax	$	160,851	$	270,780	$	(26,960	)	$	41,448	$	(24,967	)
Net income													$	421,152
	As of September 30, 2014
Segment Assets:
Segment assets, excluding goodwill	$	14,133,609	$	4,060,535	$	1,053,512		$	2,272,749	$	8,335,906		$	29,856,311
Goodwill													816,818
Total assets													$	30,673,129

	Nine Months Ended September 30, 2013
	Solutions		Specialty Property		Health		Employee Benefits		Corporate & Other			Consolidated
Revenues
Net earned premiums	$	2,056,300	$	1,727,724	$	1,172,775	$	757,494	$	—		$	5,714,293
Net investment income	282,502		74,723		27,861		88,856		15,176			489,118
Net realized gains on investments	—		—		—		—		30,264			30,264
Amortization of deferred gain on   disposal of businesses	—		—		—		—		12,238			12,238
Fees and other income	279,758		82,202		21,061		17,605		500			401,126
Total revenues	2,618,560		1,884,649		1,221,697		863,955		58,178			6,647,039
Benefits, losses and expenses
Policyholder benefits	647,713		649,554		868,307		541,107		1,462			2,708,143
Amortization of deferred acquisition   costs and value of business acquired	851,326		229,686		532		20,454		—			1,101,998
Underwriting, general and   administrative expenses	969,112		520,307		314,085		266,628		98,235			2,168,367
Interest expense	—		—		—		—		57,369			57,369
Total benefits, losses and   expenses	2,468,151		1,399,547		1,182,924		828,189		157,066			6,035,877
Segment income (loss) before   provision (benefit) for income tax	150,409		485,102		38,773		35,766		(98,888		)	611,162
Provision (benefit) for income taxes	47,902		169,288		33,472		12,060		(31,651		)	231,071
Segment income (loss) after tax	$	102,507	$	315,814	$	5,301	$	23,706	$	(67,237	)
Net income												$	380,091
	As of December 31, 2013
Segment Assets:
Segment assets, excluding goodwill	$	13,321,648	$	3,858,314	$	884,077	$	2,298,698	$	8,567,391		$	28,930,128
Goodwill												784,561
Total assets												$	29,714,689

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Basis of Presentation Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting, policy

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 GAAP for complete financial statements.

The interim financial data as of September 30, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014 and 2013 is unaudited; in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary to a fair statement of the results for the interim periods. The unaudited interim 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.

The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, and the rules and regulations thereunder (together, the “Affordable Care Act”) introduced new and significant premium stabilization programs in 2014. These programs required the Company to record amounts to our consolidated financial statements based on assumptions and estimates which could materially change as experience develops.

Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The accompanying unaudited 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, 2013.

New Accounting Pronouncements, Policy [Policy Text Block]

Adopted

On January 1, 2014, the Company adopted the new guidance on presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this guidance state that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. An exception to this guidance would be where a net operating loss carryforward or similar tax loss or credit carryforward would not be available under the tax law to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. In such a case, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of this new presentation guidance did not impact the Company’s financial position or results of operations.

On January 1, 2014, the Company adopted the other expenses guidance that addresses how health insurers should recognize and classify in their statements of operations fees mandated by the Affordable Care Act. The Affordable Care Act imposes an annual fee on health insurers for each calendar year beginning on or after January 1, 2014. The amendments specify that the liability for the fee should be estimated and recorded in full once the entity provides qualifying health insurance in the applicable calendar year in which the fee is payable with a corresponding deferred cost that is amortized to expense ratably over the calendar year during which it is payable. The Company’s adoption of this guidance impacts the results of our Assurant Health and Assurant Employee Benefits segments. During the third quarter of 2014, the final assessment of the annual insurer fee of $25,723 was paid to the federal government. As a result of this payment, the estimated liability for the mandated fees was reduced to $0. For the nine months ended September 30, 2014, the Company recorded $19,292 of amortization expense related to the deferred costs in underwriting, general and administrative expenses in the consolidated statements of operations, resulting in an ending balance in deferred costs, recorded in other assets on the consolidated balance sheet, of $6,431 as of September 30, 2014.

Not Yet Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance on revenue recognition. The amended guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. Insurance contracts are within the scope of other standards and therefore are specifically excluded from the scope of the amended revenue recognition guidance. The core principle of the amended guidance is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle, the entity applies a five step process outlined in the amended guidance. The amended guidance also includes a cohesive set of disclosure requirements. The amended guidance is effective for interim and annual periods beginning after December 15, 2016 and early adoption is not permitted. Therefore, the Company is required to adopt the guidance on January 1, 2017. An entity can choose to apply the amended guidance using either the full retrospective approach or a modified retrospective approach. The Company is currently evaluating the requirements of the revenue recognition guidance as it relates to its non-insurance contract revenue and the potential impact on the Company’s financial position and results of operations.

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Debt (Credit Facility) (Details) (USD $)		9 Months Ended				9 Months Ended		0 Months Ended
	Sep. 30, 2014	Sep. 30, 2014 Credit Facility 2011	Sep. 30, 2014 Letter of Credit	Sep. 16, 2014 Letter of Credit Credit Facility 2014	Sep. 30, 2014 Revolving Credit Facility	Sep. 30, 2014 Revolving Credit Facility Credit Facility 2014	Sep. 16, 2014 Revolving Credit Facility Credit Facility 2014	Sep. 21, 2011 Revolving Credit Facility Credit Facility 2011	Sep. 21, 2011 Revolving Credit Facility Credit Facility 2011	Dec. 31, 2013 Commercial Paper Credit Facility 2014
Line of Credit Facility [Line Items]
Senior revolving credit facility borrowing capacity				$ 50,000,000	$ 400,000,000	$ 400,000,000	$ 400,000,000		$ 350,000,000
Senior revolving credit facility available capacity					395,740,000
Amount outstanding	0		4,260,000							0
Line of Credit Facility, initiation date						Sep. 16, 2014
Term of debt instrument						5 years		4 years
Line of Credit Facility, expiration date						Sep. 01, 2019
Maximum borrowing capacity							525,000,000
Borrowings		$ 0

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Investments (Credit Loss Impairments Recognized) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Beginning balance	$ 39,248	$ 93,745	$ 45,278	$ 95,589
Additions for credit loss impairments recognized in the current period on securities previously impaired			30	107
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security	(506)	(597)	(3,151)	(1,465)
Reductions for credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period	(1,662)	(190)	(5,077)	(1,273)
Ending balance	$ 37,080	$ 92,958	$ 37,080	$ 92,958

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Consolidated Statements of Comprehensive Income (unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 140,297	$ 128,788	$ 421,152	$ 380,091
Other comprehensive (loss) income:
Change in unrealized gains on securities, net of taxes of $27,439, $21,164, $(129,418) and $220,190, respectively	(51,617)	(43,305)	259,350	(431,554)
Change in other-than-temporary impairment gains, net of taxes of $48, $(150), $(1,236) and $(1,064), respectively	(89)	279	2,295	1,976
Change in foreign currency translation, net of taxes of $(10,957), $(1,627), $1,396 and $4,178, respectively	(54,264)	5,578	(34,434)	(28,653)
Amortization of pension and postretirement unrecognized net periodic benefit cost, net of taxes of $(885), $(1,748), $(3,073) and $(7,610), respectively	1,644	3,246	5,705	14,134
Total other comprehensive (loss) income	(104,326)	(34,202)	232,916	(444,097)
Total comprehensive income (loss)	$ 35,971	$ 94,586	$ 654,068	$ (64,006)

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Basis of Presentation

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

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 GAAP for complete financial statements.

The interim financial data as of September 30, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014 and 2013 is unaudited; in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary to a fair statement of the results for the interim periods. The unaudited interim 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.

The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, and the rules and regulations thereunder (together, the “Affordable Care Act”) introduced new and significant premium stabilization programs in 2014. These programs required the Company to record amounts to our consolidated financial statements based on assumptions and estimates which could materially change as experience develops.

Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The accompanying unaudited 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, 2013.

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Retirement and Other Employee Benefits (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Qualified pension benefits plan (under)/over - funded amount	$ 9,867,000	$ (18,078,000)
Funded status percentage	99.00%	102.00%
Cash contribution to qualified pension benefits plan	22,500,000
Cash expected contribution to plan over remainder of 2014	$ 7,500,000

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Investments (Tables)

9 Months Ended

Sep. 30, 2014

Investments [Abstract]

Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and OTTI

The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairment (“OTTI”) of our fixed maturity and equity securities as of the dates indicated:

	September 30, 2014
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		OTTI in AOCI (a)
Fixed maturity securities:
United States government and   government agencies and authorities	$	172,994	$	5,053	$	(639	)	$	177,408	$	—
States, municipalities and political   subdivisions	758,072		72,812		(517		)	830,367		—
Foreign governments	610,000		60,062		(1,706		)	668,356		—
Asset-backed	4,061		1,729		(32		)	5,758		1,620
Commercial mortgage-backed	56,527		1,534		—			58,061		—
Residential mortgage-backed	949,236		51,815		(3,446		)	997,605		19,404
Corporate	7,931,922		966,302		(11,770		)	8,886,454		23,163
Total fixed maturity securities	$	10,482,812	$	1,159,307	$	(18,110	)	$	11,624,009	$	44,187
Equity securities:
Common stocks	$	21,129	$	13,743	$	(49	)	$	34,823	$	—
Non-redeemable preferred stocks	437,836		51,485		(2,437		)	486,884		—
Total equity securities	$	458,965	$	65,228	$	(2,486	)	$	521,707	$	—
	December 31, 2013
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		OTTI in AOCI (a)
Fixed maturity securities:
United States government and   government agencies and authorities	$	408,378	$	4,166	$	(1,888	)	$	410,656	$	—
States, municipalities and political   subdivisions	774,233		63,543		(2,624		)	835,152		—
Foreign governments	647,486		35,543		(7,608		)	675,421		—
Asset-backed	4,320		1,910		(56		)	6,174		1,773
Commercial mortgage-backed	57,594		2,850		(82		)	60,362		—
Residential mortgage-backed	919,216		41,905		(13,217		)	947,904		19,525
Corporate	7,709,083		684,776		(37,653		)	8,356,206		19,359
Total fixed maturity securities	$	10,520,310	$	834,693	$	(63,128	)	$	11,291,875	$	40,657
Equity securities:
Common stocks	$	17,890	$	11,352	$	(10	)	$	29,232	$	—
Non-redeemable preferred stocks	399,645		38,880		(9,399		)	429,126		—
Total equity securities	$	417,535	$	50,232	$	(9,409	)	$	458,358	$	—

(a) Represents the amount of OTTI recognized in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date

Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity

The cost or amortized cost and fair value of fixed maturity securities at September 30, 2014 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

	Cost or Amortized Cost		Fair Value
Due in one year or less	$	339,714	$	344,017
Due after one year through five years	2,437,561		2,571,729
Due after five years through ten years	2,690,101		2,832,899
Due after ten years	4,005,612		4,813,940
Total	9,472,988		10,562,585
Asset-backed	4,061		5,758
Commercial mortgage-backed	56,527		58,061
Residential mortgage-backed	949,236		997,605
Total	$	10,482,812	$	11,624,009

Proceeds from Sales of Available-For-Sale Securities and the Gross Realized Gains and Gross Realized Losses

The following table summarizes the proceeds from sales of available-for-sale securities and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales.

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2014		2013		2014		2013
Proceeds from sales	$	401,627	$	525,996	$	1,403,671	$	2,028,274
Gross realized gains	18,109		9,865		49,696		46,290
Gross realized losses	1,607		12,339		8,174		23,391

Net Realized Gains (Losses), Including Other-Than-Temporary Impairments

The following table sets forth the net realized gains (losses), including OTTI, recognized in the statement of operations as follows:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2014			2013			2014			2013
Net realized gains (losses) related to sales and other:
Fixed maturity securities	$	17,848		$	(2,232	)	$	39,538		$	20,215
Equity securities	(149		)	82			4,988			4,753
Other investments	45			(279		)	(914		)	6,605
Total net realized gains (losses) related to sales and   other	17,744			(2,429		)	43,612			31,573
Net realized losses related to other-than-temporary impairments:
Fixed maturity securities	—			(660		)	(30		)	(767		)
Other investments	—			(542		)	—			(542		)
Total net realized losses related to other-than-temporary impairments	—			(1,202		)	(30		)	(1,309		)
Total net realized gains (losses)	$	17,744		$	(3,631	)	$	43,582		$	30,264

Credit Loss Impairments Recognized

The following tables set forth the amount of credit loss impairments recognized within the results of operations on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in AOCI, and the corresponding changes in such amounts.

	Three Months Ended September 30,
	2014			2013
Balance, June 30,	$	39,248		$	93,745
Reductions for increases in cash flows expected to be collected that are recognized over   the remaining life of the security	(506		)	(597		)
Reductions for credit loss impairments previously recognized on securities which   matured, paid down, prepaid or were sold during the period	(1,662		)	(190		)
Balance, September 30,	$	37,080		$	92,958
	Nine Months Ended September 30,
	2014			2013
Balance, January 1,	$	45,278		$	95,589
Additions for credit loss impairments recognized in the current period on securities   previously impaired	30			107
Reductions for increases in cash flows expected to be collected that are recognized over   the remaining life of the security	(3,151		)	(1,465		)
Reductions for credit loss impairments previously recognized on securities which   matured, paid down, prepaid or were sold during the period	(5,077		)	(1,273		)
Balance, September 30,	$	37,080		$	92,958

Duration of Gross Unrealized Losses on Fixed Maturity Securities and Equity Securities

The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities and equity securities at September 30, 2014 and December 31, 2013 were as follows:

	September 30, 2014
	Less than 12 months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed maturity securities:
United States Government and   government agencies and authorities	$	37,746	$	(104	)	$	24,895	$	(535	)	$	62,641	$	(639	)
States, municipalities and political   subdivisions	7,080		(383		)	4,565		(134		)	11,645		(517		)
Foreign governments	43,539		(112		)	46,480		(1,594		)	90,019		(1,706		)
Asset-backed	—		—			1,462		(32		)	1,462		(32		)
Residential mortgage-backed	104,337		(379		)	124,490		(3,067		)	228,827		(3,446		)
Corporate	720,525		(7,245		)	196,815		(4,525		)	917,340		(11,770		)
Total fixed maturity securities	$	913,227	$	(8,223	)	$	398,707	$	(9,887	)	$	1,311,934	$	(18,110	)
Equity securities:
Common stock	$	1,078	$	(46	)	$	193	$	(3	)	$	1,271	$	(49	)
Non-redeemable preferred stocks	58,042		(756		)	31,314		(1,681		)	89,356		(2,437		)
Total equity securities	$	59,120	$	(802	)	$	31,507	$	(1,684	)	$	90,627	$	(2,486	)

	December 31, 2013
	Less than 12 months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed maturity securities:
United States Government and   government agencies and authorities	$	52,615	$	(1,464	)	$	3,514	$	(424	)	$	56,129	$	(1,888	)
States, municipalities and political   subdivisions	30,145		(2,624		)	—		—			30,145		(2,624		)
Foreign governments	217,708		(7,596		)	111		(12		)	217,819		(7,608		)
Asset-backed	—		—			1,442		(56		)	1,442		(56		)
Commercial mortgage-backed	5,036		(82		)	—		—			5,036		(82		)
Residential mortgage-backed	407,808		(11,667		)	31,498		(1,550		)	439,306		(13,217		)
Corporate	1,412,611		(36,848		)	19,291		(805		)	1,431,902		(37,653		)
Total fixed maturity securities	$	2,125,923	$	(60,281	)	$	55,856	$	(2,847	)	$	2,181,779	$	(63,128	)
Equity securities:
Common stock	$	187	$	(10	)	$	—	$	—		$	187	$	(10	)
Non-redeemable preferred stocks	159,723		(8,200		)	11,807		(1,199		)	171,530		(9,399		)
Total equity securities	$	159,910	$	(8,210	)	$	11,807	$	(1,199	)	$	171,717	$	(9,409	)

Credit Quality Indicators for Commercial Mortgage Loans

The following summarizes our loan-to-value and average debt-service coverage ratios as of the dates indicated:

	September 30, 2014
Loan-to-Value	Carrying Value			% of Gross Mortgage Loans		Debt-Service Coverage Ratio
70% and less	$	1,129,193		89.8	%	2.03
71 – 80%	87,488			7.0	%	1.25
81 – 95%	34,694			2.7	%	0.97
Greater than 95%	6,531			0.5	%	0.43
Gross commercial mortgage loans	1,257,906			100	%	1.94
Less valuation allowance	(4,482		)
Net commercial mortgage loans	$	1,253,424
	December 31, 2013
Loan-to-Value	Carrying Value			% of Gross Mortgage Loans		Debt-Service Coverage Ratio
70% and less	$	1,143,200		88.5	%	1.97
71 – 80%	73,603			5.7	%	1.44
81 – 95%	58,752			4.6	%	1.19
Greater than 95%	15,959			1.2	%	0.87
Gross commercial mortgage loans	1,291,514			100	%	1.89
Less valuation allowance	(4,482		)
Net commercial mortgage loans	$	1,287,032

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Investments (Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, cost or amortized cost	$ 339,714
Due after one year through five years, cost or amortized cost	2,437,561
Due after five years through ten years, cost or amortized cost	2,690,101
Due after ten years, cost or amortized cost	4,005,612
Total, cost or amortized cost	9,472,988
Fixed maturity securities, cost or amortized cost	10,482,812	10,520,310
Due in one year or less, fair value	344,017
Due after one year through five years, fair value	2,571,729
Due after five years through ten years, fair value	2,832,899
Due after ten years, fair value	4,813,940
Total, fair value	10,562,585
Fixed maturity securities, fair value	11,624,009	11,291,875
Residential mortgage-backed
Schedule of Available-for-sale Securities [Line Items]
Cost or amortized cost	949,236
Fair value	997,605
Commercial mortgage-backed
Schedule of Available-for-sale Securities [Line Items]
Cost or amortized cost	56,527
Fair value	58,061
Asset-backed
Schedule of Available-for-sale Securities [Line Items]
Cost or amortized cost	4,061
Fair value	$ 5,758

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Retirement and Other Employee Benefits

9 Months Ended

Sep. 30, 2014

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Retirement and Other Employee Benefits

Retirement and Other Employee Benefits

The components of net periodic benefit cost for the Company’s qualified pension benefits plan, nonqualified pension benefits plan and retirement health benefits plan for the three and nine months ended September 30, 2014 and 2013 were as follows:

	Qualified Pension Benefits						Nonqualified Pension Benefits (1)				Retirement Health Benefits
	For the Three Months Ended September 30,						For the Three Months Ended September 30,				For the Three Months Ended September 30,
	2014			2013			2014		2013		2014			2013
Service cost	$	7,966		$	7,832		$	1,139	$	1,008	$	494		$	581
Interest cost	9,521			8,867			1,636		1,480		959			911
Expected return on plan assets	(12,427		)	(11,036		)	—		—		(766		)	(799		)
Amortization of prior service cost	—			4			218		249		(242		)	(241		)
Amortization of net loss (gain)	1,792			3,801			969		1,182		(208		)	—
Curtailment/settlement charge	—			—			436		—		—			—
Net periodic benefit cost	$	6,852		$	9,468		$	4,398	$	3,919	$	237		$	452
	Qualified Pension Benefits						Nonqualified Pension Benefits (1)				Retirement Health Benefits
	For the Nine Months Ended September 30,						For the Nine Months Ended September 30,				For the Nine Months Ended September 30,
	2014			2013			2014		2013		2014			2013
Service cost	$	24,366		$	26,432		$	3,139	$	3,308	$	1,694		$	2,281
Interest cost	27,821			24,017			4,636		3,880		2,909			2,561
Expected return on plan assets	(37,127		)	(33,186		)	—		—		(2,316		)	(2,199		)
Amortization of prior service cost	—			4			618		599		(692		)	(691		)
Amortization of net loss (gain)	6,342			17,451			2,819		4,382		(308		)	—
Curtailment/settlement charge	—			—			436		—		—			—
Net periodic benefit cost	$	21,402		$	34,718		$	11,648	$	12,169	$	1,287		$	1,952

(1) The Company’s nonqualified plan is unfunded.

Our qualified pension benefits plan (the “Plan”) was under-funded by $9,867 and over-funded by $18,078 (based on the fair value of Plan assets compared to the projected benefit obligation) at September 30, 2014 and December 31, 2013, respectively. This equates to a 99% and 102% funded status at September 30, 2014 and December 31, 2013, respectively. The change in funded status is mainly due to a decrease in the discount rate used to determine the projected benefit obligation. During the first nine months of 2014, $22,500 in cash was contributed to the Plan. Additional cash, up to $7,500, is expected to be contributed to the Plan over the remainder of 2014.