Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2015

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 June 30, 2015 and December 31, 2014. 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 and other derivatives. The fair value amount and the majority of the associated levels presented for Other investments and Assets and Liabilities held in separate accounts are received directly from third parties.



	June 30, 2015
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies and authorities	$	174,401	$	—		$	174,401		$	—
State, municipalities and political subdivisions	758,908		—			758,908			—
Foreign governments	622,440		847			621,593			—
Asset-backed	5,216		—			5,216			—
Commercial mortgage-backed	30,647		—			30,343			304
Residential mortgage-backed	1,069,100		—			1,069,100			—
Corporate	8,085,227		—			8,035,417			49,810
Equity securities:
Common stocks	39,879		39,197			682			—
Non-redeemable preferred stocks	483,907		—			481,787			2,120
Short-term investments	442,611		346,187		b	96,424		c	—
Collateral held/pledged under securities agreements	95,291		92,089		b	3,202		c	—
Other investments	266,526		66,253		a	197,892		c	2,381		d
Cash equivalents	767,105		765,638		b	1,467		c	—
Other assets	1,303		—			515		f	788		e
Assets held in separate accounts	1,871,780		1,713,417		a	158,363		c	—
Total financial assets	$	14,714,341	$	3,023,628		$	11,635,310		$	55,403

Financial Liabilities
Other liabilities	$	94,842	$	66,253	a	$	12	f	$	28,577	f
Liabilities related to separate accounts	1,871,780		1,713,417		a	158,363		c	—
Total financial liabilities	$	1,966,622	$	1,779,670		$	158,375		$	28,577



	December 31, 2014
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies and authorities	$	176,842	$	—		$	176,842		$	—
State, municipalities and political subdivisions	769,841		—			769,841			—
Foreign governments	664,863		757			664,106			—
Asset-backed	5,519		—			5,519			—
Commercial mortgage-backed	46,016		—			45,613			403
Residential mortgage-backed	968,726		—			964,081			4,645
Corporate	8,631,367		—			8,527,092			104,275
Equity securities:
Common stocks	37,950		37,266			684			—
Non-redeemable preferred stocks	461,457		—			459,457			2,000
Short-term investments	345,246		266,980		b	78,266		c	—
Collateral held/pledged under securities agreements	74,985		67,783		b	7,202		c	—
Other investments	272,755		59,358		a	211,276		c	2,121		d
Cash equivalents	683,142		635,804		b	47,338		c	—
Other assets	1,674		—			867		f	807		e
Assets held in separate accounts	1,854,193		1,682,671		a	171,522		c	—
Total financial assets	$	14,994,576	$	2,750,619		$	12,129,706		$	114,251

Financial Liabilities
Other liabilities	$	84,660	$	59,358	a	$	69	f	$	25,233	f
Liabilities related to separate accounts	1,854,193		1,682,671		a	171,522		c	—
Total financial liabilities	$	1,938,853	$	1,742,029		$	171,591		$	25,233


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.

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 six months ended June 30, 2015 and 2014:



	Three Months Ended June 30, 2015
	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 out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
Commercial mortgage-backed	$	354		$	—		$	(3	)	$	—	$	(47	)	$	—		$	304
Corporate	100,990			576			(2,026		)	6,523		(3,476		)	(52,777		)	49,810
Equity Securities
Non-redeemable preferred stocks	2,060			—			60			—		—			—			2,120
Other investments	2,460			(33		)	(11		)	—		(35		)	—			2,381
Other assets	944			(156		)	—			—		—			—			788
Financial Liabilities
Other liabilities	(26,181		)	(2,473		)	—			77		—			—			(28,577		)
Total level 3 assets and liabilities	$	80,627		$	(2,086	)	$	(1,980	)	$	6,600	$	(3,558	)	$	(52,777	)	$	26,826



	Three Months Ended June 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 out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
Foreign governments	$	16,873		$	—		$	—		$	—	$	—		$	(16,873	)	$	—
Commercial mortgage-backed	550			—			(4		)	—		(43		)	—			503
Corporate	108,213			(43		)	920			9,941		(2,204		)	—			116,827
Equity Securities
Non-redeemable preferred stocks	5,714			—			161			—		—			(1,776		)	4,099
Other investments	3,060			(420		)	5			—		(30		)	—			2,615
Other assets	2,300			(32		)	—			—		—			—			2,268
Financial Liabilities
Other liabilities	(23,045		)	(115		)	—			—		—			—			(23,160		)
Total level 3 assets and liabilities	$	113,665		$	(610	)	$	1,082		$	9,941	$	(2,277	)	$	(18,649	)	$	103,152



	Six Months Ended June 30, 2015
	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
Commercial mortgage- backed	$	403		$	—		$	(6	)	$	—	$	(93	)	$	—	$	—		$	304
Residential mortgage- backed	4,645			—			—			—		—			—		(4,645		)	—
Corporate	104,275			568			(1,146		)	6,523		(5,631		)	2,130		(56,909		)	49,810
Equity Securities
Non-redeemable preferred stocks	2,000			—			120			—		—			—		—			2,120
Other investments	2,121			95			(15		)	—		(56		)	236		—			2,381
Other assets	807			(19		)	—			—		—			—		—			788
Financial Liabilities
Other liabilities	(25,233		)	(3,421		)	—			77		—			—		—			(28,577		)
Total level 3 assets and liabilities	$	89,018		$	(2,777	)	$	(1,047	)	$	6,600	$	(5,780	)	$	2,366	$	(61,554	)	$	26,826



	Six Months Ended June 30, 2014
	Balance, beginning of period			Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized (losses) gains included in other comprehensive income (2)			Purchases			Sales			Transfers out (3)			Balance, end of period
Financial Assets
Fixed Maturity Securities
States, municipalities and political subdivisions	$	22,657		$	—		$	—		$	—		$	—		$	(22,657	)	$	—
Foreign governments	16,857			(2		)	18			—			—			(16,873		)	—
Commercial mortgage-backed	598			—			(9		)	—			(86		)	—			503
Residential mortgage-backed	4,167			—			—			—			—			(4,167		)	—
Corporate	115,344			55			4,126			9,941			(5,283		)	(7,356		)	116,827
Equity Securities
Non-redeemable preferred stocks	7,510			328			(133		)	—			(1,830		)	(1,776		)	4,099
Other investments	4,171			(1,515		)	9			—			(50		)	—			2,615
Other assets	2,491			(223		)	—			—			—			—			2,268
Financial Liabilities
Other liabilities	(20,330		)	1,170			—			(4,000		)	—			—			(23,160		)
Total level 3 assets and liabilities	$	153,465		$	(187	)	$	4,011		$	5,941		$	(7,249	)	$	(52,829	)	$	103,152


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


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


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

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

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



	June 30, 2015
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	1,267,033	$	1,347,169	$	—	$	—	$	1,347,169
Policy loans	45,453		45,453		45,453		—		—
Other investments	13,479		13,479		—		—		13,479
Total financial assets	$	1,325,965	$	1,406,101	$	45,453	$	—	$	1,360,648
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	709,661	$	741,411	$	—	$	—	$	741,411
Funds withheld under reinsurance	95,632		95,632		95,632		—		—
Debt	1,171,229		1,263,453		—		1,263,453		—
Obligations under securities agreements	95,289		95,289		95,289		—		—
Total financial liabilities	$	2,071,811	$	2,195,785	$	190,921	$	1,263,453	$	741,411

	December 31, 2014
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	1,272,616	$	1,448,215	$	—	$	—	$	1,448,215
Policy loans	48,272		48,272		48,272		—		—
Other investments	10,896		10,896		—		—		10,896
Total financial assets	$	1,331,784	$	1,507,383	$	48,272	$	—	$	1,459,111
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	743,951	$	764,949	$	—	$	—	$	764,949
Funds withheld under reinsurance	75,161		75,161		75,161		—		—
Debt	1,171,079		1,296,139		—		1,296,139		—
Obligations under securities agreements	95,986		95,986		95,986		—		—
Total financial liabilities	$	2,086,177	$	2,232,235	$	171,147	$	1,296,139	$	764,949


(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.