Assurant Reports Q2 2004 Net Income of $95.2 Million ($0.67 per Pro Forma Share), an Increase of 5% Over 2003, Net Operating Income of $97.8 Million ($0.69 per Pro Forma Share), an Increase of 18% Over 2003

News Release

NEW YORK, August 5, 2004—Assurant, Inc. ("Assurant") (NYSE: AIZ), a premier provider of specialized insurance and insurance-related products and services, today reported its results for the quarter and the six-month period ended June 30, 2004.


J. Kerry Clayton, President and Chief Executive Officer, said: "Our diversified specialty insurance platform continues to deliver very good results. Net operating income for the second quarter increased 18% compared to a year ago, primarily driven by continued strong performances in Assurant Solutions and Assurant Health."

Second Quarter Results:

Net income in the second quarter of 2004 grew 5.0% to $95.2 million, or $0.67 per pro forma share (see footnote 1 at the end of this release), versus second quarter 2003 net income of $90.7 million, or $0.64 per pro forma share.

Net operating income (see footnote 2 at the end of this release) for the second quarter of 2004 grew 18.5% to $97.8 million, or $0.69 per pro forma share, compared to second quarter 2003 net operating income of $82.6 million, or $0.58 per pro forma share. Net operating income excludes capital gains and losses, loss on disposal of business and IPO related expenses.

Net earned premiums in the second quarter of 2004 grew 8.9% to $1.6 billion from $1.5 billion for the same period in 2003. Assurant's two largest segments, Assurant Solutions and Assurant Health, continued to drive net earned premium growth.

Net investment income in the second quarter of 2004 increased to $157.6 million from $154.4 million in the second quarter of 2003. The yield on average invested assets and cash and cash equivalents was 5.57% in the second quarter of 2004, compared to 5.92% in the second quarter of 2003.

Six-Month Results:

Net income in the first half of 2004 grew 15.7% to $189.6 million, or $1.33 per pro forma share, versus first half 2003 net income of $163.9 million, or $1.15 per pro forma share.

Net operating income for the first half of 2004 grew 16.5% to $185.3 million, or $1.30 per pro forma share, compared to first half 2003 net operating income of $159.0 million, or $1.12 per pro forma share. Net operating income excludes capital gains and losses, loss on disposal of business and IPO-related expenses.

Net earned premiums in the first half of 2004 grew 8.5% to $3.2 billion from $3.0 billion for the same period in 2003.

Net investment income in the first half of 2004 increased to $311.5 million from $305.9 million in the first half of 2003. The yield on average invested assets and cash and cash equivalents was 5.49% for the first six months of 2004, compared to 5.91% for the first half of 2003.

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Assurant Solutions

Assurant Solutions second quarter 2004 net operating income was $38.6 million, up 13.2% from second quarter 2003 net operating income of $34.1 million. First half 2004 net operating income of $78.6 million grew 14.5% from $68.7 million in the first half of 2003. Net operating income for the second quarter and six-month period of 2004 increased due to growth in net earned premiums and improved loss experience, primarily as a result of lower catastrophe activity versus the second quarter and first six months of 2003.

Assurant Solutions second quarter 2004 net earned premiums grew 10.5% to $610.6 million from $552.4 million in the same year-ago period. Net earned premiums in the first half of 2004 grew 9.8% to $1.2 billion from $1.1 billion in the first half of 2003. The increases in net earned premium for the second quarter and six-month period of 2004 were primarily due to growth in the creditor-placed homeowners insurance and extended service contract products.

Assurant Health

Assurant Health second quarter 2004 net operating income increased 31.3% to $39.9 million from $30.4 million in same period in 2003. Net operating income for the first half of 2004 grew 23.7% to $76.6 million from $62.0 million in the first half of 2003. The increases in net operating income for the second quarter and the six-month period of 2004 were primarily due to premium growth and further improvement in combined ratio from already favorable levels.

Assurant Health second quarter 2004 net earned premiums grew 13.8% to $559.4 million from $491.7 million in the same period in 2003. Net earned premiums in the first half of 2004 increased 14.6% to $1.1 billion from $968.8 million in the first half of 2003. Net earned premium growth for the second quarter and six-month period of 2004 is attributable to continued sales and membership growth in the individual medical product lines. Health Savings Account (HSA) sales continued to be a strong contributor to individual medical sales. In the second quarter of 2004, Assurant Health renewed its national marketing alliance with State Farm, under which Assurant Health is the exclusive provider of individual medical insurance marketed through State Farm agents nationwide.

Assurant Employee Benefits

Assurant Employee Benefits second quarter 2004 net operating income decreased 23.8% to $14.0 million when compared to the particularly strong second quarter of 2003 net operating income of $18.4 million. Net operating income for the first half of 2004 increased 2.8% to $27.3 million from $26.5 million in the first half of 2003. The increase in net operating income for the first half of 2004 was primarily due to favorable loss experience in the Disability and Group Life businesses.

Assurant Employee Benefits second quarter 2004 net earned premiums grew 2.1% to $309.2 million from $302.8 million in the same period of 2003. Net earned premiums in the first half of 2004 grew 0.7% to $627.2 million from $623.0 million in the first half of 2003. Net earned premium increases for the second quarter and the six-month period of 2004 were primarily driven by increases in Disability premiums, which were offset by lower premium growth in the Dental and Group Life product lines as a result of pricing and renewal discipline in an increasingly competitive environment.

Assurant Preneed

Assurant Preneed second quarter 2004 net operating income was $10.1 million, up 2.7% from $9.9 million in the same period of 2003. First half 2004 net operating income decreased 12.7% to $16.6 million from $19.0 million in the first half of 2003. The increase in second quarter 2004 net operating income was attributable to actions taken to reduce crediting rates where we have the ability to do so and reduced expenses. Net operating income for the first half of 2004 decreased primarily due to lower new money yields.

Assurant Preneed second quarter 2004 net earned premiums decreased 0.6% to $136.3 million from $137.2 million in the same period of 2003. Assurant Preneed first half 2004 net earned premiums decreased 0.6% to $269.5 million from $271.2 million in the first half of 2003. The segment's sales activity has begun to stabilize compared to a year ago and net earned premiums increased for the second consecutive quarter.

Corporate

Amortization of deferred gains from businesses sold through reinsurance declined consistent with the run-off of these businesses. Interest expense in the second quarter of 2004 declined by $8.5 million after-tax compared to the second quarter of 2003 as a result of a lower level of debt at lower interest rates. Corporate and other net operating loss for the second quarter of 2004 was $3.8 million, primarily due to public company expenses, including expenses related to Sarbanes-Oxley compliance, and lower investment income. Additionally, each Assurant business incurred Sarbanes-Oxley related expenses.

Financial Position

At June 30, 2004 total assets were $23.3 billion and total invested assets, cash and cash equivalents were $11.6 billion. In the second quarter of 2004, Assurant had after-tax net capital gains of approximately $3.7 million compared to net realized after-tax gains of $8.1 million in the second quarter of 2003. In the second quarter of 2004, Assurant recorded no other than temporary impairments compared to $3.2 million after-tax in the second quarter of 2003. During the second quarter Assurant sold WorkAbility, a small non core operation and recognized an after-tax loss of $6.3 million.

Earnings Conference Call

Assurant will host a conference call this morning, August 5th at 10:00 a.m. (ET) with access available via Internet and telephone. Investors and analysts may participate in the live conference call by dialing 800-473-6123 (toll-free domestic) or 973-582-2706 (international); passcode: Assurant. Please call to register at least 10 minutes before the conference call begins. A replay of the call will be available for one week via the telephone starting at approximately 12:00 pm (ET) on August 5, 2004 and can be accessed at 877-519-4471 (toll-free domestic) or 973-341-3080 (international); passcode: 4877330. The webcast will be archived for one month on Assurant's website.

About Assurant

Assurant is a premier provider of specialized insurance products and related services in North America and selected other markets. The four key businesses -- Assurant Employee Benefits; Assurant Health; Assurant Preneed; and Assurant Solutions -- have partnered with clients who are leaders in their industries and have built leadership positions in a number of specialty insurance market segments in the U.S. and selected international markets. The Assurant business units provide creditor-placed homeowners insurance; manufactured housing homeowners insurance; debt protection administration; credit insurance; warranties and extended services contracts; individual health and small employer group health insurance; group dental insurance; group disability insurance; group life insurance; and pre-funded funeral insurance.

The company, which is traded on the New York Stock Exchange under the symbol AIZ, has over $20 billion in assets and $7 billion in revenue. Assurant has more than 12,000 employees and is headquartered in New York's financial district.

Safe Harbor Statement Some of the statements included in this press release, particularly those anticipating future financial performance, business prospects, growth and operating strategies and similar matters, are forward-looking statements that involve a number of risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. For a discussion of the factors that could affect our actual results please refer to the risk factors identified from time to time in our SEC reports, including, but not limited to, our 10-K, as filed with the SEC.

Non-GAAP Financial Measures

Assurant uses the following non-GAAP financial measures to analyze the company's operating performance for the periods presented in this press release. Because Assurant's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assurant's non-GAAP financial measures to those of other companies.

(1) Pro forma earnings per share has been included as a measure of operating performance. In February 2004, Assurant completed a significant capital restructuring in conjunction with its initial public offering of common stock. Pro forma earnings per share reflects earnings per share adjusted as if this capital restructuring had occurred on January 1, 2003. This restructuring included: a stock split and conversion of Class B and C shares resulting in total outstanding shares of 109,222,276; the issuance of 32,976,854 shares of Assurant common stock to Fortis Insurance N.V. in exchange for a capital contribution of $725.5 million, and the issuance of 68,976 restricted shares of Assurant common stock to certain officers and directors of the company pursuant to specific restricted stock grants (9,546 vested shares and 59,430 unvested shares). These transactions occurred subsequent to the December 31, 2003 balance sheet, but management believes that this adjusted measure provides a better indication of operating performance than the corresponding GAAP measure, earnings per share.

(2) Assurant uses net operating income as an important measure of the company's operating performance. Net operating income equals net income excluding net realized gains (losses) on investments and other unusual and/or infrequent items. The company believes net operating income provides investors a valuable measure of the performance of the company's ongoing business, because it excludes both the effect of realized gains (losses) on investments that tend to be highly variable from period to period, and those events that are unusual and/or unlikely to recur.

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Investor Relations & Press Contacts:
Larry Cains or Melissa Kivett
Assurant
212-859-7045 or 212-859-7029
larry.cains@assurant.com or melissa.kivett@assurant.com