Revision of Prior Period Financial Statements |
Revision of Prior Period Financial Statements The Company revised its prior period financial statements for an error related to reinsurance of claims and benefits payable within the Connected Living business unit in the Global Lifestyle segment occurring in late 2018 through first quarter 2022 that resulted in an understatement of policyholder benefits and an overstatement of net income. See Note 2 for additional information. In addition, the Company has corrected other unrelated immaterial errors which were previously recorded in the periods in which the Company identified them. A summary of revisions to our previously reported financial statements is presented below (in millions, except for per share data).
Revised Consolidated Balance Sheet
| | | | | | | | | | | | | | | | | | | As of December 31, 2021 | | | | | | As Reported | Adjustment | As Revised | Reinsurance recoverables | | | | | $ | 6,178.9 | | $ | 2.3 | | $ | 6,181.2 | | Other Assets | | | | | 692.1 | | 6.8 | | 698.9 | | Total assets | | | | | 33,911.5 | | 9.1 | | 33,920.6 | | Claims and benefits payable | | | | | 1,595.9 | | 8.9 | | 1,604.8 | | Reinsurance balances payable | | | | | 420.4 | | 25.8 | | 446.2 | | Total liabilities | | | | | 28,421.8 | | 34.7 | | 28,456.5 | | Retained Earnings | | | | | 4,066.8 | | (25.6) | | 4,041.2 | | Total Assurant, Inc. stockholders’ equity | | | | | 5,489.7 | | (25.6) | | 5,464.1 | | Total equity | | | | | 5,489.7 | | (25.6) | | 5,464.1 | | Total liabilities and equity | | | | | 33,911.5 | | 9.1 | | 33,920.6 | |
Revised Consolidated Statements of Operations
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2021 | | Nine Months Ended September 30, 2021 | | As Reported | Adjustment | As Revised | | As Reported | Adjustment | As Revised | Policyholder benefits | $ | 614.2 | | $ | 3.2 | | $ | 617.4 | | | $ | 1,681.2 | | $ | 3.0 | | $ | 1,684.2 | | Underwriting, general and administrative expenses | 818.3 | | 0.1 | | 818.4 | | | 2,301.2 | | 5.5 | | 2,306.7 | | Total benefits, losses and expenses | 2,446.3 | | 3.3 | | 2,449.6 | | | 6,991.5 | | 8.5 | | 7,000.0 | | Income from continuing operations before income tax expense | 191.5 | | (3.3) | | 188.2 | | | 621.2 | | (8.5) | | 612.7 | | Income tax expense | 37.9 | | (0.7) | | 37.2 | | | 134.4 | | (0.6) | | 133.8 | | Net income from continuing operations | 153.6 | | (2.6) | | 151.0 | | | 486.8 | | (7.9) | | 478.9 | | Net income | 882.4 | | (2.6) | | 879.8 | | | 1,248.8 | | (7.9) | | 1,240.9 | | Net income attributable to stockholders | 882.4 | | (2.6) | | 879.8 | | | 1,248.8 | | (7.9) | | 1,240.9 | | Net income attributable to common stockholders | 882.4 | | (2.6) | | 879.8 | | | 1,244.1 | | (7.9) | | 1,236.2 | | Basic earnings per share from continuing operations | 2.60 | | (0.04) | | 2.56 | | | 8.07 | | (0.13) | | 7.94 | | Basic earnings per share attributable to common stockholders | 14.92 | | (0.04) | | 14.88 | | | 20.81 | | (0.13) | | 20.68 | | Diluted earnings per share from continuing operations | 2.58 | | (0.04) | | 2.54 | | | 8.00 | | (0.13) | | 7.87 | | Diluted earnings per share attributable to common stockholders | 14.83 | | (0.04) | | 14.79 | | | 20.52 | | (0.13) | | 20.39 | |
Revised Consolidated Statements of Comprehensive Income
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2021 | | Nine Months Ended September 30, 2021 | | As Reported | Adjustment | As Revised | | As Reported | Adjustment | As Revised | Net Income | $ | 882.4 | | $ | (2.6) | | $ | 879.8 | | | $ | 1,248.8 | | $ | (7.9) | | $ | 1,240.9 | | Total comprehensive income | 194.3 | | (2.6) | | 191.7 | | | 454.9 | | (7.9) | | 447.0 | | Total comprehensive income attributable to stockholders | 194.3 | | (2.6) | | 191.7 | | | 454.9 | | (7.9) | | 447.0 | |
Revised Consolidated Statements of Changes in Equity
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2021 | | Nine Months Ended September 30, 2021 | | As Reported | Adjustment | As Revised | | As Reported | Adjustment | As Revised | Beginning equity | $ | 5,908.4 | | $ | (20.5) | | $ | 5,887.9 | | | $ | 5,954.8 | | $ | (15.2) | | $ | 5,939.6 | | Net Income | 882.4 | | (2.6) | | 879.8 | | | 1,248.8 | | (7.9) | | 1,240.9 | | | | | | | | | | Ending equity | 5,744.4 | | (23.1) | | 5,721.3 | | | 5,744.4 | | (23.1) | | 5,721.3 | |
Revised Consolidated Statement of Cash Flows
| | | | | | | | | | | | | Nine Months Ended September 30, 2021 | | As Reported | Adjustment | As Revised | Operating activities | | | | Net Income Attributable to Stockholders | $ | 1,248.8 | | $ | (7.9) | | $ | 1,240.9 | | Change in insurance policy reserves and expenses | 1,427.8 | | (2.0) | | 1,425.8 | | Change in reinsurance recoverable | (517.7) | | (1.0) | | (518.7) | | Change in reinsurance balance payable | 31.2 | | 6.0 | | 37.2 | | Change in deferred acquisition costs and value of business acquired | (712.1) | | 5.5 | | (706.6) | | Change in taxes receivable | (122.7) | | (0.7) | | (123.4) | | Other | (17.1) | | 0.1 | | (17.0) | | Net cash provided by operating activities | 527.0 | | — | | 527.0 | |
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