UNION SECURITY LIFE INSURANCE COMPANY OF NEW YORK
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2005

TABLE OF CONTENTS

Item				Page
Number				Number
PART I FINANCIAL INFORMATION
1.		FINANCIAL STATEMENTS			2
		Union Security Life Insurance Company of New York Balance Sheets at September 30, 2005 (Unaudited) and December 31, 2004			2
		Union Security Life Insurance Company of New York Statements of Operations (Unaudited) for the three and nine months ended September 30, 2005 and 2004			4
		Union Security Life Insurance Company of New York Statement of Changes in Stockholder’s Equity from December 31, 2004 to September 30, 2005 (Unaudited)			5
		Union Security Life Insurance Company of New York Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2005 and 2004			6
		Union Security Life Insurance Company of New York Notes to the Financial Statements for the nine months ended September 30, 2005 and 2004 (Unaudited)			7
2.		MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			9
3.		QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK *			11
4.		CONTROLS AND PROCEDURES			11
PART II OTHER INFORMATION
2.		UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS*			12
3.		DEFAULTS UPON SENIOR SECURITIES *			12
4.		SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS *			12
5.		OTHER INFORMATION			12
6.		EXHIBITS			12
SIGNATURES					13
EX-31.1: CERTIFICATION
EX-31.2: CERTIFICATION
EX-32.1: CERTIFICATION
EX-32.2: CERTIFICATION

* Not required under reduced disclosure pursuant to General Instruction H(1) (a) and (b) of Form 10-Q

Union Security Life Insurance Company of New York
Balance Sheets
At September 30, 2005 (Unaudited) and December 31, 2004

		September 30,				December 31,
		2005				2004
		(in thousands except number of shares)
Assets
Investments:
Fixed maturities available for sale, at fair value (amortized cost — $103,314 in 2005 and $116,275 in 2004)		$	109,750			$	125,201
Equity securities available for sale, at fair value (cost — $8,990 in 2005 and $8,514 in 2004)			8,834				8,571
Commercial mortgage loans on real estate at amortized cost			11,640				9,125
Policy loans			96				80
Short-term investments			15,143				4,575
Other investments			3,309				3,565
Total investments			148,772				151,117
Cash and cash equivalents			5,324				5,360
Premiums and accounts receivable, net			2,992				4,858
Reinsurance recoverables			99,529				93,607
Due from affiliates			4,518				582
Accrued investment income			1,761				1,701
Tax receivable			—				1,250
Deferred acquisition costs			1,276				1,123
Deferred income taxes, net			1,849				1,481
Goodwill			2,038				2,038
Other assets			87				95
Assets held in separate accounts			28,343				32,446
Total assets		$	296,489			$	295,658

See the accompanying notes to the financial statements.

Union Security Life Insurance Company of New York
Balance Sheets
At September 30, 2005 (Unaudited) and December 31, 2004

		September 30,				December 31,
		2005				2004
		(in thousands except number of shares)
Liabilities
Future policy benefits and expenses		$	33,980			$	29,168
Unearned premiums			17,637				20,902
Claims and benefits payable			139,144				139,270
Commissions payable			5,886				5,001
Reinsurance balances payable			3,179				2,509
Funds held under reinsurance			84				89
Deferred gain on disposal of businesses			5,545				6,492
Accounts payable and other liabilities			4,332				8,292
Income tax payable			373				—
Liabilities related to separate accounts			28,343				32,446
Total liabilities			238,503				244,169
Stockholder’s equity
Common stock, par value $20 per share, 100,000 shares authorized, issued, and outstanding			2,000				2,000
Additional paid-in capital			43,006				43,006
Retained earnings			8,898				644
Accumulated other comprehensive income			4,082				5,839
Total stockholder’s equity			57,986				51,489
Total liabilities and stockholder’s equity		$	296,489			$	295,658

See the accompanying notes to the financial statements.

Union Security Life Insurance Company of New York
Statements of Operations (Unaudited)
Three and Nine Months Ended September 30, 2005 and 2004

		Three Months Ended September 30,								Nine Months Ended September 30,
		2005				2004				2005				2004
		(in thousands)
Revenues
Net earned premiums and other considerations		$	15,155			$	14,906			$	45,783			$	47,007
Net investment income			2,154				2,280				6,516				7,569
Net realized (loss) gain on investments			(18	)			500				113				702
Amortization of deferred gain on disposal of businesses			313				395				947				1,182
Fees and other income			3				62				25				180
Total revenues			17,607				18,143				53,384				56,640
Benefits, losses and expenses
Policyholder benefits			7,635				9,761				26,660				29,582
Amortization of deferred acquisition costs and value of business acquired			120				88				760				225
Underwriting, general and administrative expenses			4,837				4,501				13,291				14,193
Total benefits, losses and expenses			12,592				14,350				40,711				44,000
Income before income taxes			5,015				3,793				12,673				12,640
Income taxes			1,782				771				4,419				3,869
Net income		$	3,233			$	3,022			$	8,254			$	8,771

See the accompanying notes to the financial statements.

Union Security Life Insurance Company of New York
Statement of Changes in Stockholder’s Equity
From December 31, 2004 to September 30, 2005 (Unaudited)

														Accumulated
						Additional								Other
						Paid-in				Retained				Comprehensive
		Common Stock				Capital				Earnings				Income				Total
		(in thousands)
Balance, December 31, 2004		$	2,000			$	43,006			$	644			$	5,839			$	51,489
Comprehensive income:
Net income			—				—				8,254				—				8,254
Other comprehensive income:
Net change in unrealized gains on securities			—				—				—				(1,757	)			(1,757	)
Total other comprehensive income																			(1,757	)
Total comprehensive income																			6,497
Balance, September 30, 2005		$	2,000			$	43,006			$	8,898			$	4,082			$	57,986

See the accompanying notes to the financial statements.

Union Security Life Insurance Company of New York
Statements of Cash Flows (Unaudited)
Nine Months Ended September 30, 2005 and 2004

		Nine Months Ended September 30,
		2005				2004
		(in thousands)
Net cash provided by (used in) operating activities		$	378			$	(2,897	)
Investing activities
Sales of:
Fixed maturities available for sale			15,820				52,062
Equity securities available for sale			771				1,088
Other invested assets			256				275
Maturities, prepayments, and scheduled redemption of:
Fixed maturities available for sale			12,002				8,017
Purchase of:
Fixed maturities available for sale			(14,907	)			(18,441	)
Equity securities available for sale			(1,257	)			(3,069	)
Change in commercial mortgage loans on real estate			(2,515	)			(3,321	)
Change in short term investments			(10,568	)			6,811
Change in policy loans			(16	)			(38	)
Net cash (used in) provided by investing activities		$	(414	)		$	43,384
Financing activities
Dividends paid			—				(40,000	)
Net cash (used in) financing activities			—				(40,000	)
Change in cash and cash equivalents			(36	)			487
Cash and cash equivalents at beginning of period			5,360				1,060
Cash and cash equivalents at end of period		$	5,324			$	1,547

See the accompanying notes to the financial statements.

Union Security Life Insurance Company of New York
Notes to the Financial Statements
Nine Months Ended September 30, 2005 and 2004 (Unaudited)

1. Nature of Operations

Union Security Life Insurance Company of New York (the “Company”), formerly know as First Fortis Life Insurance Company, is a provider of life and health insurance products. The Company is a wholly owned subsidiary of Assurant, Inc. (the “Parent”). Assurant, Inc. is traded on the New York Stock Exchange under the symbol AIZ.

The Company is domiciled in New York and is qualified to sell life, health and annuity insurance in the state of New York. The Company’s revenues are derived principally from group employee benefits and credit products. The Company offers insurance products, including life insurance policies, annuity contracts, and group life, accident and health insurance policies.

Effective September 6, 2005, the Company changed its name from First Fortis Life Insurance Company in conjunction with the Parent’s initial public offering on February 5, 2004.

2. Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates when recording transactions resulting from business operations based on information currently available. The most significant items on the Company’s balance sheet that involve accounting estimates and actuarial determinations are goodwill, reinsurance recoverables, valuation of investments, deferred acquisition costs (“DAC”), liabilities for future policy benefits and expenses, claims and benefits payable and taxes. The accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commissions and other acquisition expenses, and terminations by policyholders. As additional information becomes available or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, the Company believes the amounts provided are reasonable and adequate.

Dollar amounts are presented in U.S. dollars and all amounts are in thousands, except for number of shares.

3. Recently Adopted Accounting Pronouncements

In June 2005, the FASB issued Statement of Financial Accounting Standards No. 154, Accounting Changes and Error Corrections, a replacement of APB Opinion No. 20, Accounting Changes, and Statement No. 3, Reporting Accounting Changes in Interim Financial Statements” (“FAS 154’’). FAS 154 changes the accounting and reporting of a change in accounting principle. Prior to FAS 154, the majority of voluntary changes in accounting principles were required to be recognized as a cumulative effect adjustment within net income during the period of the change. FAS 154 requires retrospective application to prior period financial statements unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. FAS 154 is effective for accounting changes made in fiscal years beginning after December 15, 2005 but does not change the transition provisions of any existing accounting pronouncements. The Company does not believe the adoption of FAS 154 will have a material effect on our consolidated financial position or results of operations.

4. Retirement and Other Employee Benefits

The Parent sponsors a defined benefit pension plan and certain other post retirement benefits covering employees and certain agents who meet eligibility requirements as to age and length of service. Plan assets of the defined benefit plans are not specifically identified by each participating subsidiary. Therefore, a breakdown of plan assets is not reflected in these financial statements. The Company has no legal obligation for benefits under these plans. The benefits are based on years of service and career compensation. Assurant’s pension plan funding policy is to contribute amounts to the plan sufficient to meet the minimum funding requirements set forth in the Employee Retirement Income Security Act of 1974, plus additional amounts as Assurant may determine to be appropriate from time to time up to the maximum permitted, and to charge each subsidiary an allocable amount based on its employee census. Pension cost allocated to the Company amounted to approximately $93 and $85 for the nine months ended September 30, 2005 and 2004, respectively.

The Company participates in a contributory profit sharing plan, sponsored by our Parent, covering employees and certain agents who meet eligibility requirements as to age and length of service. Benefits are payable to participants on retirement or disability and to the beneficiaries of participants in the event of death. For employees hired on or before December 31, 2000, the first 3% of an employee’s contribution is matched 200% by the Company. The second 2% is matched 50% by the Company. For employees hired after December 31, 2000, the first 3% of an employee’s contribution is matched 100% by the Company. The second 2% is matched 50% by the Company. The amount expensed was approximately $23 and $4 for the nine months ended September 30, 2005 and 2004, respectively.

With respect to retirement benefits, the Company participates in other health care and life insurance benefit plans (postretirement benefits) for retired employees, sponsored by our Parent. Health care benefits, either through the Parent’s sponsored retiree plan for retirees under age 65 or through a cost offset for individually purchased Medigap policies for retirees over age 65, are available to employees who retire on or after January 1, 1993, at age 55 or older, with 10 years or more service. Life insurance, on a retiree pay all basis, is available to those who retire on or after January 1, 1993.

5. Commitments and Contingencies

The Company is regularly involved in litigation in the ordinary course of business, both as a defendant and as a plaintiff. The Company may from time to time be subject to a variety of legal and regulatory actions relating to the Company’s current and past business operations. While the Company cannot predict the outcome of any pending or future litigation, examination or investigation, the Company does not believe that any pending matter will have a material adverse effect on the Company’s financial condition or results of operations.

The Company’s Parent has been part of industry-wide investigations into certain loss mitigation products and finite risk insurance. The Parent has previously received subpoenas for information from the United States Securities and Exchange Commission and the United States Attorney for the Southern District of New York. A disclosure of these investigations is provided in the Parent’s Quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2005.

PART I
FINANCIAL INFORMATION

Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations.

(Dollar amounts in thousands except share data.)

     Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) addresses the financial condition of Union Security Life Insurance Company of New York (USLIC) as of September 30, 2005, compared with December 31, 2004, and its results of operations for the three and nine months ended September 30, 2005, compared with the equivalent 2004 periods. This discussion should be read in conjunction with USLIC’s MD&A and annual audited financial statements as of December 31, 2004 included in the Company’s Form 10-K for the year ended December 31, 2004 filed with the U.S. Securities and Exchange Commission (hereafter referred to as the Company’s 2004 Form 10-K) and unaudited consolidated financial statements and related notes included elsewhere in this Form 10-Q.

     Some of the statements in this MD&A and elsewhere in this report may contain forward-looking statements that reflect our current views with respect to, among other things, future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. 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. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in this report. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements you read in this report reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, financial condition, growth strategy and liquidity.

     The tables below present information regarding our consolidated results of operations:

		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2005				2004				2005				2004
		(in thousands)								(in thousands)
Revenues:
Net earned premiums and other considerations		$	15,155			$	14,906			$	45,783			$	47,007
Net investment income			2,154				2,280				6,516				7,569
Net realized gains on investments			(18	)			500				113				702
Amortization of deferred gains on disposal of businesses			313				395				947				1,182
Fees and other income			3				62				25				180
Total revenues			17,607				18,143				53,384				56,640
Benefits, losses and expenses:
Policyholder benefits			7,635				9,761				26,660				29,582
Selling, underwriting and general expenses(1)			4,957				4,589				14,051				14,418
Total benefits, losses and expenses			12,592				14,350				40,711				44,000
Income before income taxes			5,015				3,793				12,673				12,640
Income taxes			1,782				771				4,419				3,869
Net income		$	3,233			$	3,022			$	8,254			$	8,771

For The Three Months Ended September 30, 2005 Compared to The Three Months Ended September 30, 2004.

Net Income

     Net income increased by $211, or 7%, to $3,233 for the three months ended September 30, 2005 from $3,022 for the three months ended September 30, 2004. The increase in net income was primarily due to a decrease in policyholder benefits of $2,126, partially offset by a decrease in net realized gains on investments of $518, an increase in selling, underwriting and general expenses of $368 and an increase in the effective tax rate primarily due to a release in the third quarter of 2004 of approximately $400 of previously provided tax accruals which were no longer needed.

Total Revenues

     Total revenues decreased by $536, or 3%, to $17,607 for the three months ended September 30, 2005 from $18,143 for the three months ended September 30, 2004. The decrease in revenues was due to a decrease in net realized gains on investments of $518 and a decrease in net investment income of $126 due to lower invested assets, partially offset by an increase in net earned premiums and other considerations of $249.

Total Benefits, Losses and Expenses

     Total benefits, losses and expenses decreased by $1,758, or 12%, to $12,592 for the three months ended September 30, 2005 from $14,350 for the three months ended September 30, 2004. The decrease in expenses was primarily due to a decrease in policyholder benefits of $2,126 driven by favorable claims experience in our small employer group health business.

For The Nine Months Ended September 30, 2005 Compared to The Nine Months Ended September 30, 2004.

Net Income

     Net income decreased by $517, or 6%, to $8,254 for the nine months ended September 30, 2005 from $8,771 for the nine months ended September 30, 2004. The decrease in net income was primarily due to a decrease in net earned premiums and other considerations of $1,224, a decrease in net investment income of $1,053, and a decrease in net realized gains on investments of $589, partially offset by a decrease in policyholder benefits of $2,922.

Total Revenues

     Total revenues decreased by $3,256, or 6%, to $53,384 for the nine months ended September 30, 2005 from $56,640 for the nine months ended September 30, 2004. Net earned premiums and other considerations decreased by $1,224 due to lower group life and dental premiums as a result of lower sales, partially offset by growth in our disability business written through alternate distribution sources. The decrease was also due to a decrease in net realized gains on investments of $589 and a decrease in net investment income of $1,053 due to lower invested assets. Amortization on deferred gains on disposal of businesses also decreased by $235 due to the continued decline in amortization of the deferred gains from the business ceded to The Hartford in 2001 and John Hancock in 2000.

Total Benefits, Losses and Expenses

     Total benefits, losses and expenses decreased by $3,289, or 7%, to $40,711 for the nine months ended September 30, 2005 from $44,000 for the nine months ended September 30, 2004. The decrease in expenses was primarily due to a decrease in policyholder benefits of $2,922 driven by lower dental benefits paid as a result of fewer sales, and favorable claims experience in our small employer group health business, offset by an increase in disability benefits driven by lower disability claim closures.

Item 3. Quantitative And Qualitative Disclosures About Market Risk.

     Not required under the reduced disclosure format.

Item 4. Controls And Procedures.

     Under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2005. Based on this evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of that date in providing a reasonable level of assurance that information we are required to disclose in reports we file or furnish under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods in SEC rules and forms. Further, our disclosure controls and procedures were effective in providing a reasonable level of assurance that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

PART II
OTHER INFORMATION

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds.

     Not required under the reduced disclosure format.

Item 3. Defaults Upon Senior Securities.

     Not required under the reduced disclosure format.

Item 4. Submission of Matters to a Vote of Security Holders.

     Not required under the reduced disclosure format.

Item 5. Other Information.

	(a)		None.
	(b)		Because all of the Company’s outstanding common stock is held indirectly by Assurant, Inc., the Company does not file a Schedule 14A and has not adopted any procedures by which security holders may recommend nominees to the registrant’s board of directors.

Item 6. Exhibits

     The following exhibits either (a) are filed with this report or (b) have previously been filed with the SEC and are incorporated herein by reference to those prior filings. Exhibits are available upon request at the investor relations section of our website, located at www.assurant.com.

	31.1			Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer.
	31.2			Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer.
	32.1			Certification of Chief Executive Officer of Union Security Life Insurance Company of New York pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	32.2			Certification of Chief Financial Officer of Union Security Life Insurance Company of New York pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 14, 2005.