ASSURANT, INC.AIZ
ASSURANT, INC. Income Taxes Disclosure
Income Taxes
The components of income tax expense (benefit) were as follows for the periods indicated:
Years Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
Pre-tax income: | |||||||||||||||||
Domestic | $ | 1,001.6 | $ | 819.2 | $ | 700.9 | |||||||||||
Foreign | 85.8 | 108.1 | 105.9 | ||||||||||||||
Total pre-tax income | $ | 1,087.4 | $ | 927.3 | $ | 806.8 | |||||||||||
Years Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
Current expense (benefit): | |||||||||||||||||
Federal and state | $ | 74.7 | $ | (124.3) | $ | 220.9 | |||||||||||
Foreign | 38.6 | 46.5 | 51.9 | ||||||||||||||
Total current expense (benefit) | 113.3 | (77.8) | 272.8 | ||||||||||||||
Deferred expense (benefit): | |||||||||||||||||
Federal and state | 112.1 | 262.3 | (80.4) | ||||||||||||||
Foreign | (10.7) | (17.4) | (28.1) | ||||||||||||||
Total deferred expense (benefit) | 101.4 | 244.9 | (108.5) | ||||||||||||||
Total income tax expense (benefit) | $ | 214.7 | $ | 167.1 | $ | 164.3 | |||||||||||
The provision for foreign taxes includes amounts attributable to income from U.S. possessions that are considered foreign under U.S. tax laws. International operations of the Company are subject to income taxes imposed by the jurisdiction in which they operate.
A reconciliation of the federal income tax rate to the Company’s effective income tax rate follows for the year ended December 31, 2025, reflecting the adoption of ASU 2023-09:
Years Ended December 31, | |||||||||||
2025 | |||||||||||
Amount | Percent | ||||||||||
U.S. federal statutory income tax rate: | $ | 228.4 | 21.0 | % | |||||||
Domestic federal: | |||||||||||
Effect of cross-border tax laws | |||||||||||
Foreign-derived intangible income | (15.5) | (1.4) | |||||||||
Tax credits | |||||||||||
Renewable energy tax credits (1) | (12.5) | (1.1) | |||||||||
Other | (7.1) | (0.7) | |||||||||
Change in valuation allowance | — | — | |||||||||
Nontaxable and nondeductible items, net | 6.8 | 0.6 | |||||||||
Changes in unrecognized tax benefits | 1.0 | 0.1 | |||||||||
Other | (7.6) | (0.7) | |||||||||
Domestic state and local income tax, net of federal income tax effect (2) | 12.1 | 1.1 | |||||||||
Foreign tax effects (3) | 9.1 | 0.8 | |||||||||
Effective income tax rate | $ | 214.7 | 19.7 | % | |||||||
(1)Pursuant to provisions under the Inflation Reduction Act, the Company purchased transferable federal tax credits during 2025 from various counterparties. Such federal tax credits were purchased at negotiated discounts, resulting in an income tax benefit recorded during the years ended December 31, 2025. Amounts owed to counterparties for the purchased credits are recorded within accounts payable and accrued expenses within the consolidated balance sheets.
(2)In 2025, state and local income taxes in Florida comprised the majority of the domestic state and local income tax, net of federal income tax effect.
(3)Results for 2025 primarily include the impact of foreign earnings taxed at different rates.
The reconciliation of the federal income tax rate to the Company’s effective income tax rate follows for the years ended December 31, 2024 and 2023 (prior to the adoption of ASU 2023-09):
Years Ended December 31, | |||||||||||
2024 | 2023 | ||||||||||
Federal income tax rate: | 21.0 | % | 21.0 | % | |||||||
Reconciling items: | |||||||||||
Non-taxable investment income | (0.1) | (0.2) | |||||||||
Foreign earnings (1) | 0.1 | 0.2 | |||||||||
Non-deductible compensation | 0.6 | 0.6 | |||||||||
Change in liability for prior year tax (2) | (1.2) | (0.8) | |||||||||
Change in valuation allowance | (0.6) | (0.6) | |||||||||
Transferable federal tax credits (3) | (1.3) | — | |||||||||
Other | (0.5) | 0.2 | |||||||||
Effective income tax rate: | 18.0 | % | 20.4 | % | |||||||
(1)Results for 2024 and 2023 primarily include the impact of foreign earnings taxed at different rates.
(2)The change in liability for prior year tax in 2024 was primarily related to additional transferable federal tax credits taken on the 2023 income tax return.
(3)Pursuant to provisions under the Inflation Reduction Act, the Company purchased transferable federal tax credits during 2024 from various counterparties. Such federal tax credits were purchased at negotiated discounts, resulting in an income tax benefit recorded during the year ended December 31, 2024. Amounts owed to counterparties for the purchased credits are recorded within accounts payable and accrued expenses within the consolidated balance sheet at December 31, 2024.
Income taxes paid (net of refunds received) for the years ended December 31, 2025, 2024 and 2023 is as follows:
Years Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
U.S. Federal | $ | 211.4 | $ | 75.7 | $ | 190.0 | |||||||||||
U.S. States | 8.8 | 3.6 | 0.1 | ||||||||||||||
Foreign (1) | 51.4 | 47.3 | 42.8 | ||||||||||||||
Income taxes paid (refunds received) | $ | 271.6 | $ | 126.6 | $ | 232.9 | |||||||||||
(1)Foreign income taxes paid (net of refunds received) for the year ended December 31, 2025 is made up of the following jurisdictions:
Year Ended December 31, 2025 | |||||
Mexico | $ | 19.8 | |||
Brazil | 14.8 | ||||
Other | 16.8 | ||||
Total Foreign | $ | 51.4 | |||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023 is as follows:
Years Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
Balance at beginning of year | $ | (17.3) | $ | (17.0) | $ | (18.5) | |||||||||||
Additions based on tax positions related to the current year | (1.2) | (0.9) | (0.9) | ||||||||||||||
Additions for tax positions of prior years | (0.9) | (2.1) | (0.5) | ||||||||||||||
Reductions for tax positions of prior years | 0.6 | 2.7 | 2.9 | ||||||||||||||
Balance at end of year | $ | (18.8) | $ | (17.3) | $ | (17.0) | |||||||||||
Total unrecognized tax benefits of $22.8 million, $20.4 million and $19.2 million for the years ended December 31, 2025, 2024, and 2023, respectively, which includes interest and penalties, would impact the Company’s consolidated effective tax rate if recognized. The liability for unrecognized tax benefits is included in accounts payable and other liabilities on the consolidated balance sheets.
The Company’s continuing practice is to recognize interest expense related to income tax matters in income tax expense. During the years ended December 31, 2025, 2024, and 2023, the Company recognized approximately $0.6 million, $1.2 million and $0.4 million, respectively, of interest expense related to income tax matters. The Company had $4.6 million, $4.0 million and $2.8 million of interest accrued as of December 31, 2025, 2024 and 2023, respectively. The Company had $0.2 million of penalties accrued as of December 31, 2025, $0.1 million as of December 31, 2024 and none as of December 31, 2023.
The Company does not anticipate any significant increase or decrease of unrecognized tax benefit within the next 12 months.
The Company and its subsidiaries file income tax returns in the U.S. and various state and foreign jurisdictions. The Company has substantially concluded all U.S. federal income tax matters for years through 2015. Substantially all non-U.S. income tax matters have been concluded for years through 2012, and all state and local income tax matters have been concluded for years through 2008.
The tax effects of temporary differences that result in significant deferred tax assets and deferred tax liabilities are as follows as of the dates indicated:
December 31, | |||||||||||
2025 | 2024 | ||||||||||
Deferred Tax Assets | |||||||||||
Policyholder and separate account reserves | $ | 580.9 | $ | 506.4 | |||||||
Net operating loss carryforwards | 36.2 | 37.1 | |||||||||
Net unrealized appreciation on securities | 14.9 | 79.8 | |||||||||
Credit carryforwards | 13.1 | 30.6 | |||||||||
Employee and post-retirement benefits | 7.0 | 9.1 | |||||||||
Compensation related | 43.8 | 44.2 | |||||||||
Capital loss carryforwards | 26.7 | 19.1 | |||||||||
Investments, net | 20.9 | 11.5 | |||||||||
Other | 113.2 | 84.3 | |||||||||
Total deferred tax assets | 856.7 | 822.1 | |||||||||
Less valuation allowance | (20.0) | (16.7) | |||||||||
Deferred tax assets, net of valuation allowance | 836.7 | 805.4 | |||||||||
Deferred Tax Liabilities | |||||||||||
Deferred acquisition costs | (1,094.2) | (1,077.7) | |||||||||
Intangible assets | (94.0) | (94.3) | |||||||||
Total deferred tax liabilities | (1,188.2) | (1,172.0) | |||||||||
Net deferred income tax liabilities | $ | (351.5) | $ | (366.6) | |||||||
A cumulative valuation allowance of $20.0 million existed as of December 31, 2025 and $16.7 million as of December 31, 2024 based on management’s assessment that it is more likely than not that certain deferred tax assets attributable to international subsidiaries will not be realized.
The Company’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income of the same character within the carryback or carryforward periods. In assessing future taxable income, the Company considered all sources of taxable income available to realize its deferred tax asset, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carryback years and tax-planning strategies. If changes occur in the assumptions underlying the Company’s tax planning strategies or in the scheduling of the reversal of the Company’s deferred tax liabilities, the valuation allowance may need to be adjusted in the future.
Other than for certain wholly owned Canadian and Latin American subsidiaries, the Company plans to indefinitely reinvest the earnings in other jurisdictions. Under current U.S. tax law, no material income taxes are anticipated on future repatriation of earnings. Therefore, deferred taxes have not been provided.
The net operating loss carryforwards by jurisdiction are as follows as of the dates indicated:
December 31, | |||||||||||
2025 | 2024 | ||||||||||
Federal net operating loss carryforwards | $ | — | $ | — | |||||||
Foreign net operating loss carryforwards (1) | $ | 143.5 | $ | 146.6 | |||||||
(1)Of the $143.5 million as of December 31, 2025, $23.2 million expires between 2026 and 2045, and $120.3 million has an unlimited carryforward.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 14, 2017 | |
| 2015 | Feb 16, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.