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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
   FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2005
 OR
 o TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from to
 Commission file number
 FORTIS BENEFITS INSURANCE COMPANY (Exact name of registrant as specified in its charter) IOWA(State or Other Jurisdiction
of Incorporation or Organization)
    
    81-0170040(I.R.S. Employer
Identification No.)729 INSURANCE EXCHANGE BUILDING
DES MOINES, IOWA(Address of Principal Executive Offices)
    
    50309(Zip Code)
 Registrants telephone number, including area code: (651) 361-4000 NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last report) 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 þ No o Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange
Act Rule 12b-2). Yes o No þ As of May 2, 2005, there were 1,000,000 shares of common stock of the registrant outstanding,
all of which are owned by Assurant, Inc. THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H(1)(a) AND (b) OF FORM 10-Q AND IS FILING THIS FORM WITH THE REDUCED DISCLOSURE
FORMAT.




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FORTIS BENEFITS INSURANCE COMPANY
QUARTERLY REPORT ON FORM 10-Q
FOR THE FISCAL YEAR ENDED MARCH 31, 2005 TABLE OF CONTENTS Item
    
    
    
    PageNumber
    
    
    

    NumberPART IFINANCIAL INFORMATION1.
    
    FINANCIAL STATEMENTS
    
    
    2Consolidated balance sheets at March 31, 2005 (Unaudited)
and December 31, 2004
    
    
    2Consolidated statements of operations (Unaudited) for the
three months ended March 31, 2005 and 2004
    
    
    4Consolidated statements of changes in stockholders equity from
December 31, 2004 to March 31, 2005 (Unaudited)
    
    
    5Consolidated statement of cash flows (Unaudited) for the three
months ended March 31, 2005 and 2004
    
    
    6Notes to the consolidated financial statements for the three months
ended March 31, 2005 and 2004 (Unaudited)
    
    
    72.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    93.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK *
    
    
    114.
    
    CONTROLS AND PROCEDURES
    
    
    11PART IIOTHER INFORMATION2.
    
    UNREGISTERED SALE
OF EQUITY SECURITIES AND USE OF PROCEEDS *
    
    
    123.
    
    DEFAULTS UPON SENIOR SECURITIES *
    
    
    124.
    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS *
    
    
    125.
    
    OTHER INFORMATION
    
    
    126.
    
    EXHIBITS
    
    
    12SIGNATURES
    
    
    13EX-10.2: AMENDED AND RESTATED REVOLVING CREDIT AGREEMENTEX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32.1: CERTIFICATIONEX-32.2: CERTIFICATION
    *
    
    Not required under reduced disclosure pursuant to General Instruction H(1) (a) and (b) of
Form 10-Q




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Fortis Benefits Insurance Company 
 Consolidated Balance Sheets
At March 31, 2005 (Unaudited) and December 31, 2004
 March 31,
    
    
    December 31,2005
    
    
    2004(in thousands except number of shares)AssetsInvestments:Fixed maturities available for sale, at fair value (amortized
cost  $3,393,347 in 2005 and $3,352,819 in 2004)
    
    $
    3,582,786
    
    
    $
    3,600,516Equity securities available for sale, at fair value
(cost  $246,430 in 2005 and $241,101 in 2004)
    
    
    246,856
    
    
    
    248,722Commercial mortgage loans on real estate at amortized cost
    
    
    685,682
    
    
    
    695,921Policy loans
    
    
    10,007
    
    
    
    9,956Short-term investments
    
    
    73,168
    
    
    
    47,989Collateral held under securities lending
    
    
    400,992
    
    
    
    332,276Other investments
    
    
    55,553
    
    
    
    49,020Total investments
    
    
    5,055,044
    
    
    
    4,984,400Cash and cash equivalents
    
    
    18,875
    
    
    
    43,362Premiums and accounts receivable, net
    
    
    88,146
    
    
    
    78,669Reinsurance recoverables
    
    
    1,271,185
    
    
    
    1,238,111Accrued investment income
    
    
    56,411
    
    
    
    51,933Due from affiliates
    
    
    7,963
    
    
    
    5,967Deferred acquisition costs
    
    
    120,582
    
    
    
    116,060Property and equipment, at cost less accumulated depreciation
    
    
    1,411
    
    
    
    1,507Deferred income taxes, net
    
    
    36,445
    
    
    
    20,515Goodwill
    
    
    156,066
    
    
    
    156,104Value of business acquired
    
    
    37,990
    
    
    
    39,413Other assets
    
    
    37,720
    
    
    
    38,708Assets held in separate accounts
    
    
    3,196,636
    
    
    
    3,435,089Total assets
    
    $
    10,084,474
    
    
    $
    10,209,838
 See the accompanying notes to the consolidated financial statements. 2




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Fortis Benefits Insurance Company
Consolidated Balance Sheets
At March 31, 2005 (Unaudited) and December 31, 2004
 ® March 31,
    
    
    December 31,2005
    
    
    2004(in thousands except number of shares)LiabilitiesFuture policy benefits and expenses
    
    $
    3,052,817
    
    
    $
    3,028,030Unearned premiums
    
    
    43,176
    
    
    
    46,228Claims and benefits payable
    
    
    1,936,030
    
    
    
    1,884,608Commissions payable
    
    
    23,820
    
    
    
    19,721Reinsurance balances payable
    
    
    4,568
    

    
    
    6,727Funds held under reinsurance
    
    
    100
    
    
    
    93Deferred gain on disposal of businesses
    
    
    197,441
    
    
    
    206,182Obligation under securities lending
    
    
    400,992
    
    
    
    332,276Accounts payable and other liabilities
    
    
    144,447
    
    
    
    159,798Tax payable
    
    
    18,140
    
    
    
    7,987Liabilities related to separate accounts
    
    
    3,196,636
    
    
    
    3,435,089Total liabilities
    
    
    9,018,167
    
    
    
    9,126,739Stockholders equityCommon stock, par value $5 per share, 1,000,000
shares authorized, issued, and outstanding
    
    
    5,000
    
    
    
    5,000Additional paid-in capital
    
    
    516,570
    
    
    
    516,570Retained earnings
    
    
    416,488
    
    
    
    388,854Accumulated other comprehensive income
    
    
    128,249
    
    
    
    172,675Total stockholders equity
    
    
    1,066,307
    
    
    
    1,083,099Total liabilities and stockholders equity
    
    $
    10,084,474
    
    
    $
    10,209,838
 See the accompanying notes to the consolidated financial statements. 3




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Fortis Benefits Insurance Company 
 Consolidated Statements of Operations (Unaudited)
Three Months Ended March 31, 2005 and 2004
 Three Months Ended March 31,2005
    
    
    2004(in thousands)RevenuesNet earned premiums and other considerations
    
    $
    456,065
    
    
    $
    438,558Net investment income
    
    
    69,114
    
    
    
    67,096Net realized gain on investments
    
    
    401
    
    
    
    3,592Amortization of deferred gain on disposal of businesses
    
    
    8,741
    
    
    
    10,858Fees and other income
    
    
    2,946
    
    
    
    3,890Total revenues
    
    
    537,267
    
    
    
    523,994Benefits, losses and expensesPolicyholder benefits
    
    
    359,841
    
    
    
    355,278Amortization of deferred acquisition costs and
value of business acquired
    
    
    17,966
    
    
    
    14,950Underwriting, general and administrative expenses
    
    
    116,543
    
    
    
    119,015Total benefits, losses and expenses
    
    
    494,350
    
    
    
    489,243Income before income taxes
    
    
    42,917
    
    
    
    34,751Income taxes
    
    
    15,283
    
    
    
    12,038Net income
    
    $
    27,634
    
    
    $
    22,713
 See the accompanying notes to the consolidated financial statements. 4




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Fortis Benefits Insurance Company 
 Consolidated Statements of Changes in Stockholders Equity
From December 31, 2004 to March 31, 2005 (Unaudited)
 AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon
    
    
    Paid-in
    
    
    Retained
    
    
    ComprehensiveStock
    
    
    Capital
    
    
    Earnings
    
    
    Income (Loss)
    
    
    Total(in thousands)Balance, December 31, 2004
    
    $
    5,000
    
    
    $
    516,570
    
    
    $
    388,854
    
    
    $
    172,675
    
    
    $
    1,083,099Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    27,634
    
    
    
    
    
    
    
    27,634Net change in unrealized gains
on securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (42,556
    )
    
    
    (42,556
    )Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,870
    )
    
    
    (1,870
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (16,792
    )Balance, March 31, 2005
    
    $
    5,000
    
    
    $
    516,570
    
    
    $
    416,488
    
    
    $
    128,249
    
    
    $
    1,066,307
 See the accompanying notes to the consolidated financial statements. 5




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Fortis Benefits Insurance Company 
 Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended March 31, 2005 and 2004
 Three Months Ended March 31,2005
    
    
    2004(in thousands)Net cash provided by operating activities
    
    $
    47,277
    
    
    $
    116,403Investing activitiesSales of:Fixed maturities available for sale
    
    
    66,000
    
    
    
    207,192Equity securities available for sale
    
    
    6,333
    
    
    
    10,995Other invested assets
    
    
    2,057
    
    
    
    2,292Maturities, prepayments, and scheduled redemption of:Fixed maturities available for sale
    
    
    57,961
    
    
    
    36,832Purchase of:Fixed maturities available for sale
    
    
    (168,803
    )
    
    
    (228,066
    )Equity securities available for sale
    
    
    (11,588
    )
    
    
    (30,957
    )Other invested assets
    
    
    (8,590
    )
    
    
    (8,716
    )Change in commercial mortgage loans on real estate
    
    
    10,102
    
    
    
    (44,171
    )Change in short term investments
    
    
    (25,179
    )
    
    
    (50,059
    )Change in collateral held under securities lending
    
    
    (68,716
    )
    
    
    (10,576
    )Change in policy loans
    
    
    (57
    )
    
    
    Net cash (used in) investing activities
    
    
    (140,480
    )
    
    
    (115,234
    )Financing activitiesChange in obligation under securities lending
    
    
    68,716
    
    
    
    10,576Net cash provided by financing activities
    
    
    68,716
    
    
    
    10,576Change in cash and cash equivalents
    
    
    (24,487
    )
    
    
    11,745Cash and cash equivalents at beginning of period
    
    
    43,362
    
    
    
    29,176Cash and cash equivalents at end of period
    
    $
    18,875
    
    
    $
    40,921Supplemental information:Income taxes paid (refunded)
    
    $
    (2,862
    )
    
    $
    (2,991
    )
 See the accompanying notes to the consolidated financial statements. 6




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Fortis Benefits Insurance Company 
 Notes to the Consolidated Financial Statements
Three Months Ended March 31, 2005 and 2004 (Unaudited)
 1. Nature of Operations Fortis Benefits Insurance Company (the Company) is a provider of life and health insurance
products. On January 1, 2004, the Company was an indirect wholly owned subsidiary of Fortis, Inc.,
which itself was an indirect, wholly owned subsidiary of Fortis N.V. of the Netherlands and Fortis
SA/NV of Belgium (collectively, Fortis) through their affiliates, including their wholly owned
subsidiary, Fortis Insurance N.V. On February 5, 2004, Fortis sold approximately 65% of its ownership interest in Assurant, Inc. via
an initial public offering (the IPO) and retained approximately 35% of its ownership (50,199,130
shares). In connection with the IPO, Fortis, Inc. was merged into Assurant, Inc., a Delaware
corporation, which was formed solely for the purpose of the redomestication of Fortis, Inc. After
the merger, Assurant, Inc. became the successor to the business, operations and obligations of
Fortis, Inc. Assurant, Inc. is traded on the New York Stock Exchange under the symbol AIZ. On January 21, 2005, Fortis owned approximately 36% (50,199,130 shares) of Assurant, Inc. based on
the number of shares outstanding that day and sold 27,200,000 of those shares in a secondary
offering to the public. Assurant, Inc. did not receive any of the proceeds from the sale of shares
of common stock by Fortis. Fortis received all net proceeds from the sale. Fortis concurrently sold
exchangeable bonds, due January 26, 2008, that are mandatorily exchangeable for their remaining
22,999,130 shares of Assurant, Inc. Fortis may elect, prior to the maturity date of the bonds, a
cash settlement alternative and pay the bondholders an amount of cash equal to the applicable
market value of Assurant, Inc.s common stock. The exchangeable bonds and the shares of the
Assurant, Inc.s common stock into which they are exchangeable have not been and will not be
registered under the Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from registration requirements. The Company was redomesticated to Iowa from Minnesota in 2004. The Company distributes its
products in all states except New York. The Companys revenues are derived principally from group
employee benefits products and from individual, group health and pre-need products. The Company
offers insurance products, including life insurance policies, annuity contracts, and group life,
accident and health insurance policies. 2. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP). The preparation of
financial statements in conformity with GAAP requires management to make estimates when recording
transactions resulting from business operations based on information currently available. The most
significant items on the Companys balance sheet that involve accounting estimates and actuarial
determinations are the value of business acquired (VOBA), goodwill, reinsurance recoverables,
valuation of investments, deferred acquisition costs (DAC), liabilities for future policy
benefits and expenses, taxes, and claims and benefits payable. The accounting estimates and
actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commissions and other acquisition expenses, and terminations by
policyholders. As additional information becomes available or actual amounts are determinable, the
recorded estimates will be revised and reflected in operating results. Although some 7




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variability is inherent in these estimates, the Company believes the amounts provided are
reasonable and adequate. Dollar amounts are presented in U.S. dollars and all amounts are in thousands except for number of
shares and securities. The consolidated financial statements include the accounts of the Company and all of its wholly
owned subsidiaries. All significant inter-company transactions and balances are eliminated in
consolidation. 3. Retirement and Other Employee Benefits The Company is an indirect wholly-owned subsidiary of Assurant, Inc., which sponsors a defined
benefit pension plan and certain other post retirement benefits covering employees and certain
agents who meet eligibility requirements as to age and length of service. Plan assets of the
defined benefit plans are not specifically identified by each participating subsidiary. Therefore,
a breakdown of plan assets is not reflected in these financial statements. The Company has no
legal obligation for benefits under these plans. The benefits are based on years of service and
career compensation. Assurants pension plan funding policy is to contribute annually the maximum
amount that can be deducted for federal income tax purposes, and to charge each subsidiary an
allocable amount based on its employee census. Pension cost allocated to the Company amounted to
approximately $1,980 and $1,751 for the three months ended March 31, 2005 and 2004, respectively. The Company participates in a contributory profit sharing plan, sponsored by Assurant, Inc.,
covering employees and certain agents who meet eligibility requirements as to age and length of
service. Benefits are payable to participants on retirement or disability and to the beneficiaries
of participants in the event of death. For employees hired on or before December 31, 2000, the
first 3% of an employees contribution is matched 200% by the Company. The second 2% is matched
50% by the Company. For employees hired after December 31, 2000, the first 3% of an employees
contribution is matched 100% by the Company. The second 2% is matched 50% by the Company. The
amount expensed was approximately $1,510 and $1,548 for the three months ended March 31, 2005 and
2004, respectively. With respect to retirement benefits, the Company participates in other health care and life
insurance benefit plans (postretirement benefits) for retired employees, sponsored by Assurant.
Health care benefits, either through an Assurant sponsored retiree plan for retirees under age 65 or
through a cost offset for individually purchased Medigap policies for retirees over age 65, are
available to employees who retire on or after January 1, 1993, at age 55 or older, with 10 years or
more service. Life insurance, on a retiree pay all basis, is available to those who retire on or
after January 1, 1993. 4. Commitments and Contingencies The Company is regularly involved in litigation in the ordinary course of business, both as a
defendant and as a plaintiff. The Company may from time to time be subject to a variety of legal
and regulatory actions relating to the Companys current and past business operations. While the
Company cannot predict the outcome of any pending or future litigation, examination or
investigation, the Company does not believe that any pending matter will have a material adverse
effect on the Companys financial condition or results of operations. 8




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PART I
FINANCIAL INFORMATION 
 Item 2.Managements Discussion And Analysis Of Financial Condition And Results Of Operations. (Dollar amounts in thousands except share data.) Managements Discussion and Analysis of Financial Condition and Results of Operations (MD&A)
addresses the financial condition of Fortis Benefits Insurance Company and its subsidiaries
(collectively, FBIC or the Company) as of March 31, 2005, compared with December 31, 2004, and its
results of operations for the three months ended March 31, 2005, compared with the equivalent 2004
period. This discussion should be read in conjunction with FBICs MD&A and annual audited financial
statements as of December 31, 2004 filed with the Companys Form 10-K for the year ended December
31, 2004 filed with the U.S. Securities and Exchange Commission (hereafter referred to as the
Companys 2004 Form 10-K) and unaudited consolidated financial statements and related notes
included elsewhere in this Form 10-Q. Some of the statements in this MD&A and elsewhere in this report may contain forward-looking
statements that reflect our current views with respect to, among other things, future events and
financial performance. You can identify these forward-looking statements by the use of
forward-looking words such as outlook, believes, expects, potential, continues, may,
will, should, seeks, approximately, predicts, intends, plans, estimates,
anticipates or the negative version of those words or other comparable words. Any forward-looking
statements contained in this report are based upon our historical performance and on current plans,
estimates and expectations. The inclusion of this forward-looking information should not be
regarded as a representation by us or any other person that the future plans, estimates or
expectations contemplated by us will be achieved. Such forward-looking statements are subject to
various risks and uncertainties. Accordingly, there are or will be important factors that could
cause our actual results to differ materially from those indicated in this report. If one or more
of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be
incorrect, actual results may vary materially from what we projected. Any forward-looking
statements you read in this report reflect our current views with respect to future events and are
subject to these and other risks, uncertainties and assumptions relating to our operations, results
of operations, financial condition, growth strategy and liquidity. The table below presents information regarding our consolidated results of operations: For the Three Months EndedMarch 31,2005
    
    
    2004(in thousands)Revenues:Net earned premiums and other considerations
    
    $
    456,065
    
    
    $
    438,558Net investment income
    
    
    69,114
    
    
    
    67,096Net realized gains on investments
    
    
    401
    
    
    
    3,592Amortization of deferred gains on disposal of businesses
    
    
    8,741
    
    
    
    10,858Fees and other income
    
    
    2,946
    
    
    
    3,890Total revenues
    
    
    537,267
    
    
    
    523,994Benefits, losses and expenses:Policyholder benefits
    
    
    359,841
    
    
    
    355,278Selling, underwriting and general expenses(1)
    
    
    134,509
    
    
    
    133,965Total benefits, losses and expenses
    
    
    494,350
    
    
    
    489,243Income before income taxes
    
    
    42,917
    
    
    
    34,751Income taxes
    
    
    15,283
    
    
    
    12,038Net income
    
    $
    27,634
    
    
    $
    22,713
   (1)
    
    Includes amortization of deferred acquisition costs and value of business acquired and
underwriting, general and administrative expenses. 9




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Three Months Ended March 31, 2005 Compared to March 31, 2004 Total Revenues Total revenues increased by $13,273, or 3%, to $537,267 for the three months ended March 31,
2005 from $523,994 for the three months ended March 31, 2004. Net earned premiums and other considerations increased by $17,507, or 4%, to $456,065 for the
three months ended March 31, 2005 from $438,558 for the three months ended March 31, 2004. The
increase was primarily due to increases of $26,564 and $3,915 in our group disability and group
life businesses, respectively, offset by a decrease of $7,881 and $4,830 in our small employer
group health and preneed businesses, respectively. The increase in group disability was primarily
driven by increased business written through alternate distribution sources, including an increase
in single premiums assumed for risk related to closed blocks of business to $26,700 for the three
months ended March 31, 2005 from $13,103 for the three months ended March 31, 2004. The increase
in group life was due to higher persistency and higher sales. The decrease in our small employer
group health was due to a decline in membership partially offset by premium rate increases. The
decrease in preneed was due to lower sales of life policies. Net investment income increased by $2,018, or 3%, to $69,114 for the three months ended March
31, 2005 from $67,096 for the three months ended March 31, 2004. This increase was primarily due
to increases in invested assets. Net realized gains on investments decreased by $3,191, or 89%, to $401 for the three months
ended March 31, 2005 from $3,592 for the three months ended March 31, 2004. Net realized gains are
comprised of both other-than-temporary impairments and realized gains/(losses) on the sales of
securities. For the three months ended March 31, 2005 and 2004, we had other-than-temporary
impairments on available for sale securities of zero and $131, respectively. Amortization
on deferred gain on disposal of business decreased by $2,117, or 19%, to $8,741
for the three months ended March 31, 2005 from $10,858 for the three months ended March 31, 2004.
The decrease was consistent with the anticipated run-off of the business ceded to The Hartford in
2001 and John Hancock in 2000. Fees and other income decreased by $944, or 24%, to $2,946 for the three months ended March
31, 2005 from $3,890 for the three months ended March 31, 2004. The decrease is primarily due to a
decline in the value of the Consumer Price Index Cap, a derivative instrument. Total Benefits, Losses and Expenses Total benefits, losses and expenses increased by $5,107, or 1%, to $494,350 for the three
months ended March 31, 2005 from $489,243 for the three months ended March 31, 2004. Policyholder benefits increased by $4,563, or 1%, to $359,841 for the three months ended March
31, 2005 from $355,278 for the three months ended March 31, 2004. The increase was primarily due
to an increase in our group disability business of $23,278. The increase was offset by decreases
of $11,418, $4,472 and $686 in our small employer group health, preneed and group life businesses,
respectively. The increase in group disability was due to the assumption of risk related to a
closed block of group disability business and increased business written through our alternate
distribution sources. The decrease in our small employer group health was due to a decline in
membership combined with favorable experience. The decrease in preneed was due to lower sales of
life policies. The decrease in group life was due to favorable mortality. Selling, underwriting and general expenses increased by $544, or less than 1%, to $134,509 for
the three months ended March 31, 2005 from $133,965 for the three months ended March 31, 2004. The
increase was due to an increase in amortization of deferred acquisition costs of $3,017 as well as
increased commission expense of $2,310. 10




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These increases were offset by a decrease in general and
administrative expenses of $4,782. The increase in amortization of deferred acquisition costs was
primarily due to higher deferred costs and amortization. The increase in commissions expense was
primarily due to a change in the mix of business in group disability to alternate distribution
sources which have a higher commission rate than traditional group disability. The increase in
commission expense was offset by a decrease in small employer group health business due to a
decline in membership. The decrease in general and administrative expenses was primarily due to
lower than expected compensation expenses in our group disability and group dental businesses. Net Income Net income increased by $4,921, or 22%, to $27,634 for the three months ended March 31, 2005
from $22,713 for the three months ended March 31, 2004. Income taxes increased by $3,245, or 27%, to $15,283 for the three months ended March 31, 2005
from $12,038 for the three months ended March 31, 2004. This increase was due to an increase in
pre-tax income. 
 Item 3.Quantitative And Qualitative Disclosures About Market Risk. Not required under the reduced disclosure format. 
 Item 4.Controls And Procedures. Under the supervision and with the participation of our Chief Executive Officer and our Chief
Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as
of March 31, 2005. Based on this evaluation, our Chief Executive Officer and our Chief Financial
Officer have concluded that our disclosure controls and procedures were effective as of that date
in providing a reasonable level of assurance that information we are required to disclose in
reports we file or furnish under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods in SEC rules and forms. Further, our disclosure
controls and procedures were effective in providing a reasonable level of assurance that
information required to be disclosed by us in such reports is accumulated and communicated to our
management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate
to allow timely decisions regarding required disclosure. 11




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PART II OTHER INFORMATION
 
 Item 2.Unregistered Sale of Equity Securities and Use of Proceeds. Not required under the reduced disclosure format. 
 Item 3.Defaults Upon Senior Securities. Not required under the reduced disclosure format. 
 Item 4.Submission of Matters to a Vote of Security Holders. Not required under the reduced disclosure format. 
 Item 5.Other Information.  (a)
    None.(b)
    Because all of the Companys outstanding common stock is held indirectly by
Assurant, Inc., the Company does not file a Schedule 14A and has not adopted any
procedures by which security holders may recommend nominees to the registrants board
of directors. 
 Item 6.Exhibits 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, located at
www.assurant.com.  10.1
    Assurant Long Term Incentive Plan (ALTIP). (incorporated by reference from Assurant, Inc.s
Form 8-k filed April 13, 2005)10.2
    Amended and Restated Revolving Credit Agreement dated April 29, 2005 by and among Assurant,
Inc., as the borrower, certain banks and financial institutions, as the lenders, and arranged
by J.P. Morgan Securities Inc. and Citigroup Global Markets, Inc.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 Fortis Benefits Insurance Company 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 Fortis Benefits Insurance Company pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 12




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SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized on May 16, 2005. FORTIS BENEFITS INSURANCE COMPANYBy: /s/ Robert B. PollockName: Robert B. PollockTitle: President and Chief Executive OfficerBy: /s/ Ranell M. JacobsonName: Ranell M. JacobsonTitle: Treasurer
 13