This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") addresses the financial condition of Assurant, Inc. and its subsidiaries (which we refer to collectively as "Assurant" or (the "Company") as of June 30, 2012, compared with December 31, 2011, and our results of operations for the three and six months ended June 30, 2012 and 2011. This discussion should be read in conjunction with our MD&A and annual audited consolidated financial statements as of December 31, 2011 included in our Annual Report on Form 10-K for the year ended December 31, 2011 filed with the U.S. Securities and Exchange Commission (the "SEC") and the June 30, 2012 unaudited consolidated financial statements and related notes included elsewhere in this Form 10-Q. The 2011 Annual Report on Form 10-K, Second Quarter 2012 Form 10-Q, and other documents related to the Company are available free of charge through the SEC website at www.sec.gov and through our website at www.assurant.com.

Some of the statements in this MD&A and elsewhere in this report, particularly those anticipating future financial performance, business prospects, growth and operating strategies and similar matters, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they may use words such as "will," "may," "anticipates," "expects," "estimates," "projects," "intends," "plans," "believes," "targets," "forecasts," "potential," "approximately," or the negative version of those words and other words and terms with a similar meaning. 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. Our actual results might differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments.

In addition to the factors described under "Critical Factors Affecting Results," the following risk factors could cause our actual results to differ materially from those currently estimated by management:

(i) the effects of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, and the rules and regulations thereunder, on our health and employee benefits businesses;

(ii) actions by governmental agencies or government sponsored entities or other circumstances, including pending regulatory matters affecting our lender-placed insurance business, that could result in reductions of the premium rates we charge, increases in the claims we pay or other expenses;

(iii) loss of significant client relationships, distribution sources and contracts;

(iv) failure to attract and retain sales representatives;

(v) losses due to natural and man-made catastrophes;

(vi) a decline in our credit or financial strength ratings (including the risk of ratings downgrades in the insurance industry);

(vii) deterioration in the Company's market capitalization compared to its book value that could result in further impairment of goodwill;

(viii) unfavorable outcomes in litigation and/or regulatory investigations that could negatively affect our business and reputation;

(ix) current or new laws and regulations that could increase our costs and decrease our revenues;

(x) general global economic, financial market and political conditions (including difficult conditions in financial, capital and credit markets, the global economic slowdown, fluctuations in interest rates or a prolonged period of low interest rates, monetary policies, unemployment and inflationary pressure);

(xi) inadequacy of reserves established for future claims;

(xii) failure to predict or manage benefits, claims and other costs;

(xiii) uncertain tax positions;

(xiv) fluctuations in exchange rates and other risks related to our international operations;

(xv) unavailability, inadequacy and unaffordable pricing of reinsurance coverage;

(xvi) diminished value of invested assets in our investment portfolio (due to, among other things, volatility in financial markets, the global economic slowdown, credit and liquidity risk, other than temporary impairments and increases in interest rates);

(xvii) insolvency of third parties to whom we have sold or may sell businesses through reinsurance or modified co-insurance;

(xviii) inability of reinsurers to meet their obligations;

(xix) credit risk of some of our agents in Assurant Specialty Property and Assurant Solutions;

(xx) failure to effectively maintain and modernize our information systems and protect them from cybersecurity threats;

(xxi) failure to protect client information and privacy;

(xxii) failure to find and integrate suitable acquisitions and new ventures;

(xxiii) inability of our subsidiaries to pay sufficient dividends;

(xxiv) failure to provide for succession of senior management and key executives;

(xxv) significant competitive pressures in our businesses;

(xxvii) cyclicality of the insurance industry.

For a more detailed discussion of the risk factors that could affect our actual results, please refer to "Item 1A-Risk Factors" and "Item 7-MD&A Critical Factors Affecting Results" in our 2011 Annual Report on Form 10-K and in this Second Quarter 2012 Form 10-Q.

Executive Summary

Assurant has five reportable segments. Our four operating segments are Assurant Solutions, Assurant Specialty Property, Assurant Health, and Assurant Employee Benefits. These operating segments partner with clients who are leaders in their industries in the United States of America (the "U.S.") and select worldwide markets. The operating segments provide lender-placed homeowners insurance, manufactured housing homeowners insurance, debt protection administration, credit-related insurance, warranties and service contracts, individual health and small employer group health insurance, group dental insurance, group disability insurance, group life insurance and pre-funded funeral insurance.

Our fifth segment, Corporate & Other, includes activities of the holding company, financing and interest expenses, net realized gains and losses on investments, interest income earned from short-term investments held and additional costs associated with excess of loss reinsurance programs reinsured and ceded to certain subsidiaries in the London market between 1995 and 1997. Corporate & Other also includes the amortization of deferred gains associated with the sales of Fortis Financial Group and Long-Term Care through reinsurance agreements.

The following discussion relates to the three and six months ended June 30, 2012 ("Second Quarter 2012" and "Six Months 2012") and the three and six months ended June 30, 2011 ("Second Quarter 2011" and "Six Months 2011").

Consolidated net income increased $4,154, or 3%, to $169,170 in Second Quarter 2012, compared with $165,016 for Second Quarter 2011, while net income was $332,430 for Six Months 2012, an increase of $26,663, or 9%, compared with $305,767 for Six Months 2011.

Assurant Solutions net income increased to $40,363 for Second Quarter 2012 from $39,187 for Second Quarter 2011. Despite a challenging global retail sales environment, our business continued to grow through the addition of new clients and our ability to find creative solutions for clients and consumers. Results from our international operations improved modestly; however, we continue to monitor the European economic uncertainty, which we expect will impact future results. During Second Quarter 2012, net earned premiums and fees increased when compared with Second Quarter 2011, primarily due to growth in service contract business both domestically and in Latin America. However, effective October 1, 2012, we will lose a domestic mobile client, which accounted for approximately $100,000 of annualized net earned premium. Increasing profitability in this segment will require business growth as well as rigorous expense control. We expect that the main drivers of this growth will be our ability to grow our mobile business and to improve results in Europe. In addition, we also expect to continue growing our preneed and domestic service contract products.

At Assurant Specialty Property, results improved for Second Quarter 2012 when compared with Second Quarter 2011, primarily due to decreased reportable catastrophe losses of $32,903 (after-tax) and a lower non-catastrophe loss ratio due to less severe Spring weather. During the quarter we began tracking 2.1 million new loans resulting from a previously disclosed portfolio acquisition. An additional 275,000 new loans will be added in the third quarter of 2012 through a loan portfolio acquisition by one of our Specialty Servicer clients. We expect these new loans to produce premiums beginning in the third quarter. Placement rates remained elevated, reflecting experience on seriously delinquent loans. As the backlog of delinquencies in the mortgage marketplace is resolved, we anticipate that placement rates will decline, which will reduce net earned premiums and related income from lender-placed products. Net earned premiums and fees from our multi-family housing products achieved double-digit growth period over period. Overall, we expect 2012 net earned premiums and fees to modestly increase for full year 2012 compared to 2011, reflecting growth in multi-family housing products and new loan portfolios added by our clients. We also expect our expense and non-catastrophe loss ratios to trend up as a result of a changing product mix.

The lender-placed insurance business has recently been an area of focus for various regulators, consumer advocates, government sponsored entities and others. As previously disclosed, the Company has been engaged in discussions and proceedings with certain state regulators regarding our lender-placed insurance business, including the New York Department of Financial Services (the "NYDFS") and the California State Department of Insurance (the "California DOI"). As a result of these discussions and proceedings, the Company may be required to decrease rates for its annual lender-placed hazard and real estate owned policies in New York and California. Earlier this year, we initiated conversations with the Consumer Financial Protection Bureau staff, which

expects to issue proposed regulations in the next several months addressing lender-placed insurance disclosures as well as other servicing issues. In addition, we have been in discussions with the Federal Housing Finance Agency, Fannie Mae and Freddie Mac to understand their views on the lender-placed industry, and we have continued discussions with Fannie Mae regarding its request for proposal issued earlier this year on cost-reduction efforts in the lender-placed business. In August, we will participate in a public forum on lender-placed insurance being held by the National Association of Insurance Commissioners as part of its annual summer meeting. For additional detail on certain pending regulatory matters, and a discussion of risks related to regulatory matters, please see "Item 1A-Risk Factors" in this Second Quarter 2012 Form 10-Q.

Assurant Health continued to make progress in the post-health care reform environment as net income increased to $28,932 for Second Quarter 2012 from $5,194 for Second Quarter 2011. Results benefited from $13,856 (after-tax) of increased real estate joint venture partnership investment income. The business continued to focus on reducing operating expenses and expanding distribution. Second Quarter 2012 expenses declined $12,885 compared with Second Quarter 2011 as we continued to streamline operations and improve our service to customers and agents. Loss ratios declined due to favorable loss experience and a change in product mix as affordable choice plans, an area of strategic focus, comprised a larger proportion of the business. Sales of supplemental products improved as more consumers expanded their health insurance coverage. As medical costs continue to increase, we anticipate sales of our affordable choice plans will increase. Individual market sales increased slightly as we continue to execute our network partnership with Aetna Signature Administrators. Small group sales continued to decline. We believe that small employers remain cautious about changing carriers while the market adapts to health care reforms. We continue to expect sales of affordable and supplemental products to increase, and major medical product sales to improve in the second half of 2012 as a result of our partnership with Aetna Signature Administrators.

At Assurant Employee Benefits, net income increased to $18,621 for Second Quarter 2012 from $8,516 for Second Quarter 2011 as all product lines had favorable loss experience. Although disability claim recoveries improved during the quarter, incidence and recovery rates can be volatile from quarter to quarter and the disability environment remains challenging. Our dental loss experience improved this quarter and a recently announced agreement with United Concordia will expand our dental network. Life loss experience also improved during Second Quarter 2012, driven by favorable mortality. Net earned premiums decreased due to the previously disclosed loss of two assumed disability clients. Our growth priority continues to be on voluntary products, which represented more than half of our sales for Second Quarter 2012. We continue to expect net earned premiums from our voluntary and supplemental products to grow this year, although overall premiums in 2012 will be lower than in 2011 primarily due to the loss of two previously disclosed disability clients.

Critical Factors Affecting Results and Liquidity

Our results depend on the adequacy of our product pricing, underwriting and the accuracy of our methodology for the establishment of reserves for future policyholder benefits and claims, returns on and values of invested assets and our ability to manage our expenses. Factors affecting these items, including unemployment, difficult conditions in financial markets and the global economy, may have a material adverse effect on our results of operations or financial condition. For more information on these factors, see "Item 1A-Risk Factors" and "Item 7-MD&A Critical Factors Affecting Results" in our 2011 Annual Report on Form 10-K.

Assurant, Inc. regularly evaluates adjustments proposed by taxing authorities. Tax years 2005-2008 are under federal audit. It is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next 12 months. However, based on the information currently available, the Company does not expect any change to be material to the consolidated financial condition but could be material to net income in any given period.

Management believes the Company will have sufficient liquidity to satisfy its needs over the next twelve months including the ability to pay interest on our Senior Notes and dividends on our common stock.

For the six months ended June 30, 2012, net cash provided by operating activities, including the effect of exchange rate changes on cash and cash equivalents, totaled $181,398; net cash provided by investing activities totaled $51,417 and net cash used in financing activities totaled $292,536. We had $1,106,992 in cash and cash equivalents as of June 30, 2012. Please see "-Liquidity and Capital Resources," below for further details.

Critical Accounting Policies and Estimates

Our 2011 Annual Report on Form 10-K described the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition and liquidity. The accounting policies and estimation process described in the 2011 Annual Report on Form 10-K were consistently applied to the unaudited interim consolidated financial statements for Second Quarter 2012.

On January 1, 2012, the Company adopted the amendments to existing guidance on accounting for costs associated with acquiring or renewing insurance contracts. This guidance was adopted retrospectively and has been applied to all prior period financial information contained in these consolidated financial statements. See Note 3 to the Notes to Consolidated Financial Statements for more information.

The Affordable Care Act was signed into law in March 2010. One provision of the Affordable Care Act, effective January 1, 2011, established a minimum medical loss ratio ("MLR") designed to ensure that a minimum percentage of premiums is paid for clinical services or health care quality improvement activities. The Affordable Care Act established an MLR of 80% for individual and small group business and 85% for large group business. If the actual loss ratios, calculated in a manner prescribed by the Department of Health and Human Services ("HHS"), are less than the required MLR, premium rebates are payable to the policyholders by August 1 of the subsequent year.

The Assurant Health loss ratio reported on page 54 (the "GAAP loss ratio") differs from the loss ratio calculated under the MLR. The most significant differences include the fact that the MLR loss ratio is calculated separately by state and legal entity; the MLR calculation includes credibility adjustments for each entity, which are not applicable to the GAAP loss ratio; the MLR calculation applies only to some of our health insurance products, while the GAAP loss ratio applies to the entire portfolio, including products not governed by the Affordable Care Act; the MLR loss ratio includes quality improvement expenses, taxes and fees; changes in reserves are treated differently in the MLR loss ratio calculation; and the MLR premium rebate amounts are considered adjustments to premiums for GAAP reporting whereas they are reported as additions to incurred claims in the MLR rebate estimate calculations.

Assurant Health has estimated its Second Quarter 2012 impact of this regulation based on definitions and calculation methodologies outlined in the Interim Final Regulation from HHS released December 1, 2010 with Technical Corrections released December 29, 2010 and the HHS Final Regulation released December 7, 2011. An estimate was based on separate projection models for individual medical and small group business using projections of expected premiums, claims, and enrollment by state, legal entity and market for medical business subject to MLR requirements for the MLR reporting year. In addition, the projection models include quality improvement expenses, state assessments and taxes.

Assurant Consolidated

Overview

The table below presents information regarding our consolidated results of
operations:



                                             For the Three Months Ended           For the Six Months Ended
                                                      June 30,                            June 30,
                                                2012              2011              2012             2011
Revenues:
Net earned premiums and other
considerations                             $    1,792,236      $ 1,768,308      $   3,569,297     $ 3,530,320
Net investment income                             199,314          173,844            371,609         345,717
Net realized gains on investments                  18,175           16,046             25,719          19,823
Amortization of deferred gain on
disposal of businesses                              4,596            5,105              9,217          10,239
Fees and other income                             114,969           99,584            226,372         193,459

Total revenues                                  2,129,290        2,062,887          4,202,214       4,099,558

Benefits, losses and expenses:
Policyholder benefits                             872,027          986,844          1,728,385       1,879,872
Selling, underwriting and general
expenses (1)                                      977,528          930,326          1,929,370       1,844,412
Interest expense                                   15,074           15,075             30,150          30,206

Total benefits, losses and expenses             1,864,629        1,932,245          3,687,905       3,754,490

Income before provision (benefit) for
income taxes                                      264,661          130,642            514,309         345,068
Provision (benefit) for income taxes               95,491          (34,374 )          181,879          39,301

Net income                                 $      169,170      $   165,016      $     332,430     $   305,767

(1) Includes amortization of deferred acquisition costs ("DAC") and value of business acquired ("VOBA").

The following discussion provides a general overall analysis of how the consolidated results were affected by our four operating segments and our Corporate and Other segment for Second Quarter 2012 and Six Months 2012, and Second Quarter 2011 and Six Months 2011. Please see the discussion that follows, for each of these segments, for a more detailed analysis of the fluctuations.

For The Three Months Ended June 30, 2012 Compared to The Three Months Ended June 30, 2011.

Net Income

The Company reported net income of $169,170 in Second Quarter 2012, an increase of $4,154, or 3%, compared with $165,016 of net income for Second Quarter 2011. The increase was primarily due to improved results in our Assurant Specialty Property, Assurant Health and Assurant Employee Benefits segments, partially offset by an $80,000 release of a capital loss valuation allowance related to deferred tax assets in Second Quarter 2011. Please see Note 6 to Consolidated Financial Statements for further information about the valuation allowance release.

For The Six Months Ended June 30, 2012 Compared to The Six Months Ended June 30, 2011.

Net Income

The Company reported net income of $332,430 for Six Months 2012, an increase of $26,663, or 9%, compared with $305,767 of net income for Six Months 2011. The improvement was primarily due to the items noted above.

Assurant Solutions

Overview

The tables below present information regarding Assurant Solutions' segment
results of operations:



                                             For the Three Months              For the Six Months
                                                Ended June 30,                   Ended June 30,
                                             2012            2011            2012             2011
Revenues:
Net earned premiums and other
considerations                            $   645,465      $ 613,304      $ 1,272,413      $ 1,214,626
Net investment income                         100,332         99,330          199,643          197,055
Fees and other income                          76,219         66,164          148,659          126,850

Total revenues                                822,016        778,798        1,620,715        1,538,531

Benefits, losses and expenses:
Policyholder benefits                         210,188        213,029          419,996          427,723
Selling, underwriting and general
expenses                                      551,044        506,543        1,074,221          996,144

Total benefits, losses and expenses           761,232        719,572        1,494,217        1,423,867

Segment income before provision for
income taxes                                   60,784         59,226          126,498          114,664
Provision for income taxes                     20,421         20,039           42,735           38,529

Segment net income                        $    40,363      $  39,187      $    83,763      $    76,135

Net earned premiums and other
considerations:
Domestic:
Credit                                    $    41,283      $  43,163      $    84,115      $    87,488
Service contracts                             310,548        301,131          616,382          599,482
Other (1)                                      19,272         13,068           33,317           25,057

Total domestic                                371,103        357,362          733,814          712,027

International:
Credit                                        109,666         99,976          216,056          191,935
Service contracts                             136,970        124,034          266,031          244,282
Other (1)                                       6,975          5,703           13,880           11,722

Total international                           253,611        229,713          495,967          447,939

Preneed                                        20,751         26,229           42,632           54,660

Total                                     $   645,465      $ 613,304      $ 1,272,413      $ 1,214,626

Fees and other income:
Domestic:
Debt protection                           $     7,086      $   7,284      $    14,051      $    14,449
Service contracts                              31,182         30,951           62,197           60,053
Other (1)                                         778            651            2,223            2,323

Total domestic                                 39,046         38,886           78,471           76,825

International                                  12,690          6,927           21,837           14,339
Preneed                                        24,483         20,351           48,351           35,686

Total                                     $    76,219      $  66,164      $   148,659      $   126,850

Gross written premiums (2):
Domestic:
Credit                                    $    98,122      $  97,205      $   191,364      $   191,686
Service contracts                             472,156        379,433          863,850          714,833
Other (1)                                      32,056         20,915           55,329           39,403

Total domestic                                602,334        497,553        1,110,543          945,922

International:
Credit                                        249,001        254,046          496,330          501,255
Service contracts                             153,838        137,473          315,361          262,233
Other (1)                                      11,414         10,968           22,464           23,023

Total international                           414,253        402,487          834,155          786,511

Total                                     $ 1,016,587      $ 900,040      $ 1,944,698      $ 1,732,433

Preneed (face sales)                      $   233,987      $ 202,408      $   446,150      $   371,883

Combined ratios (3):
Domestic                                         97.9 %         96.6 %           97.1 %           96.2 %
International                                   101.1 %        104.3 %          101.4 %          104.9 %

. . .