Assurant finalizes 2019 property catastrophe reinsurance program
Assurant announced it has finalized its 2019 property catastrophe reinsurance program, reducing the company's financial exposure and protecting more than 3 million homeowners and renters policyholders against severe weather and other hazards. U.S. Program provides $1.16 billion of coverage in excess of a $80 million retention per-event with a projected probable maximum loss of approximately a 1-in-173-year storm, based on projected modeled loss estimates. When combined with the Florida Hurricane Catastrophe Fund, the program is covered for gross Florida losses of up to $1.4 billion. Multiyear reinsurance contracts cover approximately 35 percent of reinsurance layers. All layers of the program allow for one automatic reinstatement, except Layer 1 which has two reinstatements, and include a cascading feature that provides multi-event protection in which higher coverage layers drop down to $120 million as the lower layers and reinstatement limit are exhausted. 2019 reinsurance premiums for this program are estimated to be approximately $165 million pre-tax reflecting the significant decrease in catastrophe per-event retention and modest growth in exposure. "We are pleased to complete our 2019 catastrophe reinsurance program, which this year includes a significant reduction of our per-event retention to $80 million, as we look to lower our catastrophe exposure and produce more predictable earnings and cash flow," said Assurant President and Chief Executive Officer Alan Colberg.