NEW YORK--(BUSINESS WIRE)--Assurant, Inc. (NYSE: AIZ), a global provider of risk management solutions, today announced it has finalized a $1.36 billion property catastrophe reinsurance program, reducing the company’s financial exposure and enhancing its ability to protect 2.8 million homeowners and renters policyholders against severe weather and other hazards.
Base reinsurance premiums for Assurant’s 2017 global catastrophe program are estimated to be $125.6 million¹, compared to $132.6 million in 2016. Lower premiums were driven by improved market pricing as well as a reduction in limits due to Assurant’s lower exposure from lender-placed insurance as that business continues to normalize.
“Assurant’s 2017 reinsurance program helps ensure we can support our policyholders at their time of need when catastrophe strikes,” said Christopher J. Pagano, Executive Vice President and Chief Risk Officer, Assurant.
“Managing risks is a core competency for Assurant, and again this year our catastrophe reinsurance program contains strong terms and conditions at attractive rates,” he added. “Assurant’s successful risk management strategies are essential to helping maintain the company’s financial strength while continuing to protect policyholders from risks of catastrophic events.”
2017 Catastrophe Program Components
U.S. per-occurrence catastrophe coverage includes:
- A main reinsurance program providing $1.03 billion of coverage in excess of a $125 million retention.
- A multiyear reinsurance contract covering a portion of the $895 million layer in excess of $260 million through 2018.
- All layers of the program allow for automatic reinstatement and include a cascading feature that provides multi-event protection in which higher coverage layers drop down as the lower layers and reinstatement limit are exhausted.
- Florida Hurricane Catastrophe Fund coverage for losses up to 90 percent of $324 million in excess of a $100 million retention.
International per-occurrence catastrophe coverage increased as
Assurant continues to expand its business in select property markets.
- Latin America protection of up to $183.5 million in excess of a $4.5 million retention, and Caribbean protection of up to $152.5 million in excess of a $17.5 million retention.
- In these regions, Assurant’s product offerings are primarily residential dwelling policies covering the structure and contents.
Assurant placed its 2017 Property Catastrophe Reinsurance Program with more than 40 reinsurers that are all rated A- or better by A.M. Best.
An illustration of the 2017 Assurant catastrophe program’s layered structure is available in the Newsroom section of www.assurant.com.
¹ Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events.
Assurant, Inc. (NYSE: AIZ) is a global provider of risk management solutions, protecting where consumers live and the goods they buy. A Fortune 500 company, Assurant focuses on the housing and lifestyle markets, and is among the market leaders in mobile device protection; extended service contracts; vehicle protection; pre-funded funeral insurance; renters insurance; lender-placed homeowners insurance; and mortgage valuation and field services. With approximately $30 billion in assets and $6 billion in annualized revenue as of March 31, 2017, Assurant has a market presence in 16 countries, while its Assurant Foundation works to support and improve communities. Learn more at assurant.com or on Twitter @AssurantNews.
Safe Harbor Statement
Some of the statements included in this news release constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update any forward-looking statements in this news release as a result of new information or future events or developments. For a detailed discussion of risk factors that could affect our results, please refer to the risk factors identified in our annual and periodic reports, including but not limited to our 2016 Annual Report on Form 10-K and First Quarter 2017 Form 10-Q each as filed with the U.S. Securities and Exchange Commission.