Unallocated claim adjustment expense

  
Reconciliation of the Disclosure of Net Incurred and Paid Claims Development to the Liability for Unpaid Claims and Benefits Payable 

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
|  | December 31, 2021 |
| Net outstanding liabilities |  |
| Global Lifestyle | $ | 273.0  |  |
| Global Housing | 472.3  |  |
| Other short-duration insurance lines (1) | 15.2  |  |
| Disposed business short-duration insurance lines (Assurant Health) | 0.7  |  |
| Claims and benefits payable, net of reinsurance | 761.2  |  |
|  |  |
| Reinsurance recoverable on unpaid claims |  |
| Global Lifestyle (2) | 428.0  |  |
| Global Housing | 289.2  |  |
| Other short-duration insurance lines (1) | 2.5  |  |
| Disposed business short-duration insurance lines (Assurant Employee Benefits and Assurant Health) | 18.1  |  |
| Total reinsurance recoverable on unpaid claims | 737.8  |  |
|  |  |
| Insurance lines other than short-duration (3) | 87.7  |  |
| Unallocated claim adjustment expense | 9.2  |  |
| Total claims and benefits payable | $ | 1,595.9  |  |

(1)Asbestos and pollution reserves represents $17.9 million of the other short-duration insurance lines, with $2.5 million recoveries. (2)Disposed of property and casualty business represents $190.6 million of the $428.0 million in reinsurance recoverables for Global Lifestyle. (3)Amount consists of certain long-duration contract exposures, primarily disabled life reserves of the long-term care business which are fully ceded through reinsurance. Refer to Note 2 for further details.   
18. ReinsuranceIn the ordinary course of business, the Company is involved in both the assumption and cession of reinsurance with non-affiliated companies. The following table provides details of the reinsurance recoverables balance as of the dates indicated:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, |
|  | 2021 |  | 2020 |
| Ceded future policyholder benefits and expense | $ | 338.4  |  |  | $ | 1,133.8  |  |
| Ceded unearned premium | 4,950.0  |  |  | 4,565.4  |  |
| Ceded claims and benefits payable | 821.8  |  |  | 846.2  |  |
| Ceded paid losses | 68.7  |  |  | 60.0  |  |
| Total | $ | 6,178.9  |  |  | $ | 6,605.4  |  |

  
A key credit quality indicator for reinsurance is the A.M. Best Company (“A.M. Best”) financial strength ratings of the reinsurer. A.M. Best financial strength ratings are an independent opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. The A.M. Best ratings for the reinsurers in new reinsurance agreements where there is material credit exposure are reviewed at the time of execution. The A.M. Best ratings for existing reinsurance agreements are reviewed on a quarterly basis, or sooner based on developments. The following table provides the reinsurance recoverable as of December 31, 2021 grouped by A.M. Best financial strength ratings:F-56
