ASSURANT, INC.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and the annual audited consolidated financial statements for the year ended December 31, 2024 and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) and the unaudited consolidated financial statements for the three months ended March 31, 2025 and accompanying notes (the “Consolidated Financial Statements”) included elsewhere in this Quarterly Report on Form 10-Q (this “Report”). The following discussion and analysis covers the three months ended March 31, 2025 (“First Quarter 2025”) and the three months ended March 31, 2024 (“First Quarter 2024”).

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and the annual audited consolidated financial statements for the year ended December 31, 2024 and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) and the unaudited consolidated financial statements for the three and six months ended June 30, 2025 and accompanying notes (the “Consolidated Financial Statements”) included elsewhere in this Quarterly Report on Form 10-Q (this “Report”). The following discussion and analysis covers the three and six months ended June 30, 2025 (“Second Quarter 2025” and “Six Months 2025”) and the three and six months ended June 30, 2024 (“Second Quarter 2024” and “Six Months 2024”).

Previous wording

(xiii)negative publicity relating to our business, industry or clients;

Current wording

(xiii)negative publicity relating to our business, practices, industry or clients;

Previous wording

(xxxi)changes in insurance, tax and other regulations, including the Inflation Reduction Act of 2022;

Current wording

(xxxi)changes in insurance, tax and other regulations;

Previous wording

We define Adjusted EBITDA, our segment measure of profitability, as net income, excluding net realized gains (losses) on investments and fair value changes to equity securities, interest expense, provision (benefit) for income taxes, depreciation expense, amortization of purchased intangible assets, as well as other highly variable or unusual items.

Current wording

We define Adjusted EBITDA, our segment measure of profitability, as net income, excluding net realized gains (losses) on investments and fair value changes to equity securities, interest expense, benefit (provision) for income taxes, depreciation expense, amortization of purchased intangible assets, as well as other highly variable or unusual items (including non-core operations and restructuring costs, each as described above).

Previous wording

Global Lifestyle net earned premiums, fees and other income increased $118.8 million, or 5%, to $2.31 billion for First Quarter 2025 from $2.19 billion for First Quarter 2024, primarily driven by Connected Living from growth in global mobile device protection and a new financial services program.

Current wording

Global Lifestyle net earned premiums, fees and other income increased $167.3 million, or 8%, to $2.35 billion for Second Quarter 2025 from $2.18 billion for Second Quarter 2024, primarily driven by Connected Living, mainly from the factors noted above, as well as a new program within financial services.

Previous wording

Global Housing Adjusted EBITDA decreased $80.1 million, or 42%, to $112.4 million for First Quarter 2025 from $192.5 million for First Quarter 2024, primarily due to $143.8 million of higher pre-tax reportable catastrophes, of which approximately $125 million was from the California wildfires, inclusive of estimated recoveries from subrogation. Excluding reportable catastrophes, Adjusted EBITDA increased $63.7 million, or 31%, primarily from continued top-line growth within Homeowners, including higher policies in-force from voluntary insurance market pressure, and favorable non-catastrophe loss experience from lower claims frequency. Results included $26.4 million of favorable prior year reserve development, compared to $22.0 million in first quarter 2024.

Current wording

Global Housing Adjusted EBITDA increased $53.5 million, or 33%, to $214.4 million for Second Quarter 2025 from $160.9 million for Second Quarter 2024. Results included $15.7 million of lower pre-tax reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA increased $37.8 million, or 18%, primarily from favorable non-catastrophe loss experience, including favorable prior period reserve development and lower claims frequency. Top-line growth within Homeowners also contributed to growth, including higher policies in-force from voluntary insurance market pressure.

Previous wording

Global Housing net earned premiums, fees and other income increased $84.6 million, or 15%, to $656.8 million for First Quarter 2025 from $572.2 million for First Quarter 2024, mainly driven by Homeowners top-line growth, including growth in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty products.

Current wording

Global Housing net earned premiums, fees and other income increased $64.1 million, or 10%, to $697.7 million for Second Quarter 2025 from $633.6 million for Second Quarter 2024, mainly driven by Homeowners top-line growth, including growth in policies in-force and higher average premiums within lender-placed and growth across various specialty products within Homeowners. Renters and Other also contributed to growth.

Previous wording

Corporate and Other Adjusted EBITDA increased $1.5 million, or 5% to $(28.0) million for First Quarter 2025 from $(29.5) million for First Quarter 2024, primarily driven by lower third-party expenses.

Current wording

Corporate and Other Adjusted EBITDA decreased $2.6 million, or 10%, to $(29.8) million for Second Quarter 2025 from $(27.2) million for Second Quarter 2024, primarily driven by higher employee-related expenses and lower investment income.

Previous wording

Our results may also be impacted by our ability to continue to grow in the markets in which we operate, which will be impacted by our ability to provide a superior customer experience, including from our investments in technology and digital initiatives, capitalize on the connected home opportunity and investments to onboard and ramp-up new business. Our mobile business is subject to volatility in mobile device trade-in volumes and margins based on the actual and anticipated timing of the release of new devices, carrier promotional programs and sales prices for used devices, as well as to changes in consumer preferences. Our Homeowners revenue is impacted by changes in the housing market, as well as the voluntary insurance market. In addition, across many of our businesses, we must respond to competitive pressures, including the threat of disruption and competition for talent, which has increased due to labor shortages and wage inflation. See “Item 1A—Risk Factors—Business, Strategic and Operational Risks—Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations”, “—Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks” and “—The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce” in our 2024 Annual Report.

Current wording

Our results may also be impacted by our ability to continue to grow in the markets in which we operate, which will be impacted by our ability to provide a superior customer experience, including from our investments in technology and digital initiatives, to capitalize on the connected home opportunity, and to onboard and ramp-up new business. Our mobile business is subject to volatility in mobile device trade-in volumes and margins based on the actual and anticipated timing of the release of new devices, carrier promotional programs and sales prices for used devices, as well as to changes in consumer preferences. Our Homeowners revenue is impacted by changes in the housing market, as well as the voluntary insurance market. In addition, across many of our businesses, we must respond to competitive pressures, including the threat of disruption and competition for talent, which has increased due to labor shortages and wage inflation. See “Item 1A—Risk Factors—Business, Strategic and Operational Risks—Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations”, “—Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks” and “—The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce” in our 2024 Annual Report.

Previous wording

Our 2024 Annual Report 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 2024 Annual Report were consistently applied to the unaudited interim Consolidated Financial Statements for First Quarter 2025.

Current wording

Our 2024 Annual Report 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 2024 Annual Report were consistently applied to the unaudited interim Consolidated Financial Statements for Second Quarter 2025.

Previous wording

Net income decreased $89.8 million, or 38%, to $146.6 million for First Quarter 2025 from $236.4 million for First Quarter 2024, primarily due to $113.7 million of higher after-tax reportable catastrophes, lower Global Lifestyle earnings and higher net realized losses on investments. The decrease in net income was partially offset by higher Global Housing earnings, excluding the impact of reportable catastrophes.

Current wording

Net income decreased $43.2 million, or 10%, to $381.9 million for Six Months 2025 from $425.1 million for Six Months 2024, primarily driven by $101.1 million of higher after-tax reportable catastrophes, $9.1 million of lower after-tax gain related to benefit plan activity as described above, $8.2 million of higher after-tax depreciation expense, mainly due to higher software assets placed into service, and higher net realized losses on investments. The decrease in net income was partially offset by higher Global Housing earnings, excluding the impact of reportable catastrophes.

Previous wording

Total benefits, losses and expenses increased $122.5 million, or 6%, to $2.19 billion for First Quarter 2025 from $2.07 billion for First Quarter 2024. Selling and underwriting expenses increased $83.3 million, or 7%, primarily due to an increase in commission expenses in Connected Living, mainly related to the growth from global mobile device protection programs, and Global Automotive. Policyholder benefits increased $24.7 million, or 6%, primarily due to a newly launched program in financial services. General expenses increased $15.7 million, or 6% primarily due to higher employee-related and information technology expenses to support growth initiatives.

Current wording

Total benefits, losses and expenses increased $280.1 million, or 7%, to $4.43 billion for Six Months 2025 from $4.15 billion for Six Months 2024. Selling and underwriting expenses increased $125.5 million, or 5%, primarily due to an increase in commission expenses in Connected Living, mainly related to the growth from global mobile device protection programs in line with the increase in net earned premiums. Policyholder benefits increased $74.4 million, or 9%, primarily due to a new financial services program in Connected Living, partially offset by lower losses within Global Automotive. Cost of sales increased $47.8 million, or 13%, driven by higher volumes in global mobile trade-in programs. General expenses increased $32.4 million, or 6%, primarily due to higher employee-related and information technology expenses to support growth initiatives.

Previous wording

Total revenues increased $89.8 million, or 15%, to $690.5 million for First Quarter 2025 from $600.7 million for First Quarter 2024. Net earned premiums increased $74.7 million, or 14%, primarily driven by Homeowners from higher lender-placed policies in-force, higher premium rates and average insured values, growth across various Specialty products, and growth in Renters and Other primarily from a block of newly acquired renters policies, partially offset by higher catastrophe reinsurance premiums from the 2024 program restructuring. Fees and other income increased $9.9 million, or 31%, primarily driven by the reclassification of certain service fees from an expense account. Net investment income increased $5.2 million, or 18%, primarily due to higher yields and invested asset balances.

Current wording

Total revenues increased $68.6 million, or 10%, to $732.1 million for Second Quarter 2025 from $663.5 million for Second Quarter 2024. Net earned premiums increased $69.8 million, or 12%, primarily driven by Homeowners from higher lender-placed policies in-force, average insured values and premium rates, growth across various specialty products within Homeowners, and growth in Renters and Other primarily from a block of newly acquired renters policies, partially offset by higher catastrophe reinsurance premiums from exposure changes. Net investment income increased $4.5 million, or 15%, primarily due to higher invested asset balances and yields. Fees and other income decreased $5.7 million, or 11%, primarily driven by the year-to-date reclassification of certain service fees from an expense account in Second Quarter 2024.

Previous wording

Adjusted EBITDA decreased $80.1 million, or 42%, to $112.4 million for First Quarter 2025 from $192.5 million for First Quarter 2024, mainly due to $143.8 million of higher pre-tax reportable catastrophes (of which approximately $125 million were from the California wildfires, inclusive of estimated recoveries from subrogation), higher expenses to support growth and higher catastrophe reinsurance premiums. The decrease in Adjusted EBITDA was partially offset by continued growth from higher policies in-force, premium rates and average insured values within Homeowners, favorable non-catastrophe loss experience, growth in Renters and Other, and higher net investment income.

Current wording

Adjusted EBITDA decreased $26.6 million, or 8%, to $326.8 million for Six Months 2025 from $353.4 million for Six Months 2024, mainly due to $128.1 million of higher pre-tax reportable catastrophes, higher costs associated with growth and higher catastrophe reinsurance premiums. The decrease in Adjusted EBITDA was partially offset by continued growth from higher policies in-force, premium rates and average insured values within Homeowners, favorable non-catastrophe loss experience, growth in Renters and Other, and higher net investment income and fee income.

Previous wording

Total benefits, losses and expenses increased $169.9 million, or 42%, to $578.1 million for First Quarter 2025 from $408.2 million for First Quarter 2024. Policyholder benefits increased $132.7 million, or 66%, primarily due to higher reportable catastrophe losses, partially offset by $22.9 million of lower non-catastrophe losses and $4.4 million of favorable year-over-year non-catastrophe prior year reserve development. First Quarter 2025 had $26.4 million of favorable prior year reserve development compared to $22.0 million in First Quarter 2024. General expenses increased $35.8 million, or 21%, primarily due to higher costs associated with growth, the reclassification described above, and one-time assessment expenses for the California FAIR Plan associated with the California wildfires.

Current wording

Total benefits, losses and expenses increased $185.0 million, or 20%, to $1.10 billion for Six Months 2025 from $910.8 million for Six Months 2024. Policyholder benefits increased $111.5 million, or 23%, primarily due to higher reportable catastrophe losses of $122.3 million, partially offset by lower non-catastrophe losses from $16.8 million of favorable year-over-year prior year reserve development. Six Months 2025 had $63.4 million of favorable non-catastrophe prior year reserve development compared to $46.6 million in Six Months 2024. General expenses increased $54.5 million, or 15%, and selling and underwriting expenses increased $19.0 million, or 26%, both primarily due to higher costs associated with growth. General expenses also increased due to one-time assessment expenses for the California FAIR Plan associated with the California wildfires.

Previous wording

Adjusted EBITDA increased $1.5 million, or 5%, to $(28.0) million for First Quarter 2025 from $(29.5) million for First Quarter 2024. The change in results was primarily due to lower third-party expenses.

Current wording

Adjusted EBITDA decreased $2.6 million, or 10%, to $(29.8) million for Second Quarter 2025 from $(27.2) million for Second Quarter 2024. The change in results was primarily due to higher employee-related expenses and lower net investment income.

Previous wording

Total revenues increased $0.4 million, or 7%, to $6.2 million for First Quarter 2025 from $5.8 million for First Quarter 2024, primarily driven by an increase in net investment income of $0.2 million, or 4%, mostly due to higher invested assets.

Current wording

Total revenues decreased $0.3 million, or 4%, to $6.9 million for Second Quarter 2025 from $7.2 million for Second Quarter 2024, primarily driven by a decrease in net investment income of $1.5 million, or 21%, mostly due to lower invested assets, partially offset by an increase in fees and other income of $1.2 million, primarily due to the sale of Internet Protocol addresses.

Previous wording

We had total investments of $9.04 billion and $8.54 billion as of March 31, 2025 and December 31, 2024, respectively. Net unrealized losses on our fixed maturity securities portfolio decreased $95.0 million during First Quarter 2025, from a $349.7 million unrealized loss at December 31, 2024 to a $254.7 million unrealized loss as of March 31, 2025, primarily due to a decrease in interest rates.

Current wording

We had total investments of $9.52 billion and $8.54 billion as of June 30, 2025 and December 31, 2024, respectively. Net unrealized losses on our fixed maturity securities portfolio decreased $186.5 million during Six Months 2025, from a $349.7 million unrealized loss at December 31, 2024 to a $163.2 million unrealized loss as of June 30, 2025, primarily due to a reduction in Treasury rates.

Previous wording

Net realized losses on investments and fair value changes to equity securities increased $7.2 million, or 82%, to $16.0 million for First Quarter 2025 from $8.8 million for First Quarter 2024. The increase was primarily driven by sales of fixed maturity securities at a loss and lower fair value changes from equity securities due to reduced investments in common stocks, partially offset by fewer impairments recorded in First Quarter 2025.

Current wording

Net realized losses on investments and fair value changes to equity securities increased $2.1 million, or 11%, to $21.7 million for Second Quarter 2025 from $19.6 million for Second Quarter 2024.The increase was primarily driven by sales of fixed maturity securities at a loss.

Previous wording

Effective April 2025, coverage was placed with various reinsurers that are all rated A- or better by A.M. Best. 2025 reinsurance premiums for the total program are estimated to be $222.7 million pre-tax, compared to $188.9 million pre-tax for 2024, reflecting exposure changes, expected Florida Hurricane Catastrophe Fund (“FHCF”) program, impacts from changing the timing of program placement to a single placement date (with a premium benefit in 2024), and favorable underlying rates from improved reinsurance market conditions. Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events.

Current wording

Effective April 2025, coverage was placed with various reinsurers that are all rated A- or better by A.M. Best. 2025 reinsurance premiums for the total program are estimated to be $210.0 million pre-tax, compared to $188.9 million pre-tax for 2024. The estimate for 2025 reflects our exposure changes, expected Florida Hurricane Catastrophe Fund (“FHCF”) program impacts and favorable underlying rates from improved reinsurance market conditions. 2024 reinsurance premiums reflected a premium benefit from changing the timing of program placement to a single placement date. Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events.

Previous wording

The U.S. per-occurrence catastrophe coverage includes a main reinsurance program providing $1.76 billion of coverage in excess of a $160.0 million retention. Layers 1 through 6 of the program allow for one automatic reinstatement. When combined with the FHCF, the U.S. program protects against gross Florida losses of up to approximately $2.04 billion, in excess of retention.

Current wording

The U.S. per-occurrence catastrophe coverage includes a main reinsurance program providing $1.76 billion of coverage in excess of a $160.0 million retention. Layers 1 through 6 of the program allow for one automatic reinstatement. When combined with the FHCF, the U.S. program protects against gross Florida losses of up to approximately $1.98 billion, in excess of retention.

Previous wording

On January 22, 2025, we entered into an agreement to sell our Miami, Florida property for a purchase price of $126.0 million, subject to the buyer receiving the requisite development approvals, which could take 18 to 24 months. If the transaction is consummated pursuant to the terms of the agreement, we expect to record a gain above the current carrying value of $46.0 million as of March 31, 2025, less estimated costs to sell. We do not anticipate that any such gain will impact our capital deployment priorities. There can be no assurance that the transaction will be consummated.

Current wording

On January 22, 2025, we entered into an agreement to sell our Miami, Florida property for a purchase price of $126.0 million, subject to certain adjustments and to the buyer receiving the requisite development approvals, which could take 18 to 24 months. If the transaction is consummated pursuant to the terms of the agreement, we expect to record a gain above the current carrying value of $46.0 million as of June 30, 2025, less estimated costs to sell. We do not anticipate that any such gain will impact our capital deployment priorities. There can be no assurance that the transaction will be consummated.

Previous wording

As of March 31, 2025, we had approximately $501.2 million in holding company liquidity, $276.2 million above our targeted minimum level of $225.0 million. The target minimum level of holding company liquidity, which can be used for unforeseen capital needs at our subsidiaries or liquidity needs at the holding company, is calibrated based on approximately one year of pre-tax corporate operating losses and interest expenses. We use the term “holding company liquidity” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc. (out of a total of $601.4 million as of March 31, 2025) which we are not otherwise holding for a specific purpose as of the balance sheet date. We can use such assets for stock repurchases, stockholder dividends, acquisitions and other corporate purposes.

Current wording

As of June 30, 2025, we had approximately $517.8 million in holding company liquidity, $292.8 million above our targeted minimum level of $225.0 million. The target minimum level of holding company liquidity, which can be used for unforeseen capital needs at our subsidiaries or liquidity needs at the holding company, is calibrated based on approximately one year of pre-tax corporate operating losses and interest expenses. We use the term “holding company liquidity” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc. (out of a total of $627.8 million as of June 30, 2025) which we are not otherwise holding for a specific purpose as of the balance sheet date. We can use such assets for stock repurchases, stockholder dividends, acquisitions and other corporate purposes.

Previous wording

Dividends or returns of capital paid by our subsidiaries, net of infusions of liquid assets and excluding amounts used for or as a result of acquisitions or received from dispositions, were $66.6 million and $804.7 million for First Quarter 2025 and Twelve Months 2024, respectively. We use these cash inflows primarily to pay holding company operating expenses, to make interest payments on indebtedness, to make dividend payments to our common stockholders, to fund investments and acquisitions, and to repurchase our common stock. From time to time, we may also seek to purchase outstanding debt in open market repurchases or privately negotiated transactions.

Current wording

Dividends or returns of capital paid by our subsidiaries, net of infusions of liquid assets and excluding amounts used for or as a result of acquisitions or received from dispositions, were $298.2 million and $804.7 million for Six Months 2025 and Twelve Months 2024, respectively. We use these cash inflows primarily to pay holding company operating expenses, to make interest payments on indebtedness, to make dividend payments to our common stockholders, to fund investments and acquisitions, and to repurchase our common stock. From time to time, we may also seek to purchase outstanding debt in open market repurchases or privately negotiated transactions.

Previous wording

During First Quarter 2025, we made common stock repurchases and paid dividends to our common stockholders of $103.4 million. We paid dividends of $0.80 per common share on March 31, 2025 to stockholders of record as of February 3, 2025. Any determination to pay future dividends will be at the discretion of the Board of Directors (the “Board”) and will be dependent upon various factors, including: our subsidiaries’ payments of dividends and other statutorily permissible payments to us; our results of operations and cash flows; our financial condition and capital requirements; general business conditions and growth prospects; any legal, tax, regulatory and contractual restrictions on the payment of dividends; and any other factors the Board deems relevant. The Credit Facility (as defined below) also contains limitations on our ability to pay dividends to our stockholders and repurchase capital stock if we are in default, or such dividend payments or repurchases would cause us to be in default, of our obligations thereunder. In addition, if we elect to defer the payment of interest on our 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 or our 5.25% Subordinated Notes due January 2061 (refer to “—Senior and Subordinated Notes” below), we generally may not make payments on or repurchase any shares of our capital stock.

Current wording

During Six Months 2025, we made common stock repurchases and paid dividends to our common stockholders of $208.6 million. We paid dividends of $0.80 per common share on June 30, 2025 to stockholders of record as of June 9, 2025. Any determination to pay future dividends will be at the discretion of the Board of Directors (the “Board”) and will be dependent upon various factors, including: our subsidiaries’ payments of dividends and other statutorily permissible payments to us; our results of operations and cash flows; our financial condition and capital requirements; general business conditions and growth prospects; any legal, tax, regulatory and contractual restrictions on the payment of dividends; and any other factors the Board deems relevant. The Credit Facility (as defined below) also contains limitations on our ability to pay dividends to our stockholders and repurchase capital stock if we are in default, or such dividend payments or repurchases would cause us to be in default, of our obligations thereunder. In addition, if we elect to defer the payment of interest on our 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 or our 5.25% Subordinated Notes due January 2061 (refer to “—Senior and Subordinated Notes” below), we generally may not make payments on or repurchase any shares of our capital stock.

Previous wording

During First Quarter 2025, we repurchased 298,946 shares of our outstanding common stock at a cost of $62.5 million, exclusive of commissions. In November 2023, the Board authorized an additional share repurchase program for up to $600.0 million of our outstanding common stock. As of March 31, 2025, $312.1 million aggregate cost at purchase remained unused under the repurchase authorization. The timing and the amount of future repurchases will depend on various factors, including those listed above.

Current wording

During Six Months 2025, we repurchased 617,649 shares of our outstanding common stock at a cost of $125.0 million, exclusive of commissions. In November 2023, the Board authorized an additional share repurchase program for up to $600.0 million of our outstanding common stock. As of June 30, 2025, $249.6 million aggregate cost at purchase remained unused under the repurchase authorization. The timing and the amount of future repurchases will depend on various factors, including those listed above.

Previous wording

In the next five years, we have two debt maturities in February 2026 and March 2028 when the 2026 Senior Notes and the 2028 Senior Notes, respectively, become due and payable.

Current wording

In the next five years, we have three debt maturities in February 2026, March 2028 and February 2030 when the 2026 Senior Notes, the 2028 Senior Notes and the 2030 Senior Notes, respectively, become due and payable.

Previous wording

We have a $500.0 million five-year senior unsecured revolving credit facility (the “Credit Facility”) with a syndicate of banks arranged by JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association. The Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and letters of credit from a sole issuing bank in an aggregate amount of $500.0 million, which may be increased up to $700.0 million. The Credit Facility is available until

Current wording

In June 2025, we entered into a $500.0 million five-year senior unsecured revolving credit facility (the “Credit Facility”) with certain lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as syndication agent. The Credit Facility replaced our prior $500.0 million five-year senior unsecured revolving credit facility, which terminated upon the effectiveness of the Credit Facility. The Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and letters of credit from a sole issuing bank in an aggregate amount of $500.0 million, which may be increased up to $750.0 million. The Credit Facility is available until June 2030, provided we are in compliance with all covenants. The Credit Facility has a sublimit for letters of credit issued thereunder of $50.0 million. The proceeds from these loans may be used for our commercial paper program or for general corporate purposes.

Previous wording

We made no borrowings under the Credit Facility during First Quarter 2025 and no loans were outstanding as of March 31, 2025.

Current wording

We made no borrowings under the Credit Facility or our prior $500.0 million five-year senior unsecured revolving credit facility during Six Months 2025, and no loans were outstanding under the Credit Facility as of June 30, 2025.

Previous wording

We did not use the commercial paper program during First Quarter 2025 and there were no amounts relating to the commercial paper program outstanding as of March 31, 2025.

Current wording

We did not use the commercial paper program during Six Months 2025 and there were no amounts relating to the commercial paper program outstanding as of June 30, 2025.

Previous wording

Net cash provided by operating activities was $392.4 million for First Quarter 2025 compared to net cash provided by operating activities of $82.5 million for First Quarter 2024. The change in net operating cash flows was largely attributable to business growth in Homeowners, growth in global mobile device protection programs and a newly launched program in financial services. Also contributing to the increase was the timing of vendor payments. This was partially offset by higher net paid claims.

Current wording

Net cash provided by operating activities was $657.9 million for Six Months 2025 compared to net cash provided by operating activities of $793.4 million for Six Months 2024. The change in net operating cash flows was largely attributable to higher net paid claims, the timing of collections of premiums and fees in our mobile business and the timing of tax payments, as we received a refund during Six Months 2024.

Previous wording

Net cash used in investing activities was $421.6 million for First Quarter 2025 compared to net cash used in investing activities of $328.2 million for First Quarter 2024. The change in net investing cash flows was primarily driven by the increased investment of net cash provided by operating activities and the reinvestment of proceeds from the sale of fixed maturity securities. Also contributing to the change was a decrease in sales of short-term investments due to the timing of working capital needs.

Current wording

Net cash used in investing activities was $784.5 million for Six Months 2025 compared to net cash used in investing activities of $521.6 million for Six Months 2024. The change in net investing cash flows was primarily driven by the increased investment of net cash provided by operating activities and the reinvestment of proceeds from the sale of fixed maturity securities.

Previous wording

Net cash used in financing activities was $118.7 million for First Quarter 2025 compared to net cash used in financing activities of $96.2 million for First Quarter 2024. The change in net financing cash flows was primarily due to higher share repurchases for First Quarter 2025.

Current wording

Net cash used in financing activities was $223.0 million for Six Months 2025 compared to net cash used in financing activities of $177.0 million for Six Months 2024. The change in net financing cash flows was primarily due to higher share repurchases for Six Months 2025.

Previous wording

In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which we are the reinsurer. These letters of credit are supported by commitments under which we are required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. We had $1.6 million and $1.8 million of letters of credit outstanding as of March 31, 2025 and December 31, 2024, respectively.

Current wording

In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which we are the reinsurer. These letters of credit are supported by commitments under which we are required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. We had $1.7 million and $1.8 million of letters of credit outstanding as of June 30, 2025 and December 31, 2024, respectively.