Company: AIZ
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001267238-25-000008
Chunk: 1

Company: ASSURANT, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7A
Chunk 1
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 fixed maturity portfolio is assessed using hypothetical scenarios that assume parallel shifts of the yield curves. Our actual experience may differ from the results indicated below, particularly due to the assumptions reflected or if events occur that were not included in the methodology. For more information, see “Item 1A – Risk Factors – Financial Risks – Actual results may differ materially from the analytical models we use to assist in our decision-making in key areas such as pricing, catastrophe risks, reserving and capital management.”

Our sensitivity analysis model produces a loss in fair value in the fixed maturity portfolio of (i) $173.2 million and $170.0 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates (including impacts of changes in credit spreads), and (ii) $340.0 million and $333.2 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 100 basis point parallel increase in interest rates (including impacts of changes in credit spreads). 

Our debt obligations also have exposure to interest rate risk, primarily at the time of refinancing. We monitor market interest rates and evaluate refinancing opportunities for our debt obligations as maturity dates approach. We stagger the maturity dates of our debt to mitigate the interest rate risk in any given year. For additional information, see Note 18 to the Consolidated Financial Statements included elsewhere in this Report and “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources”.

Our sensitivity analysis model produces a loss in fair value of our debt obligations of (i) $48.4 million and $54.0 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates, and (ii) $95.3 million and $106.3 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 100 basis point parallel increase in interest rates. 

Foreign Exchange Risk

We are exposed to foreign exchange risk arising from our investments in foreign subsidiaries. Foreign exchange risk is the possibility that changes in exchange rates produce an adverse effect on earnings and equity when measured in domestic 

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currency.  This risk is largest when assets backing liabilities payable in one currency are invested in financial instruments of another currency. To manage