[July 10, 2017] |
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Assurant Announces $1.36 Billion 2017 Property Catastrophe Reinsurance Program
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.
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2017 Assurant Catastrophe Reinsurance Program
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
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U.S. per-occurrence catastrophe coverage includes:
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A main reinsurance program providing $1.03 billion of
coverage in excess of a $125 million retentin.
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A multiyear reinsurance contract covering a portion of the
$895 million layer in excess of $260 million through 2018.
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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.
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Florida Hurricane Catastrophe Fund coverage for losses up
to 90 percent of $324 million in excess of a $100 million
retention.
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International per-occurrence catastrophe coverage increased as
Assurant continues to expand its business in select property markets.
Specifics include:
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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.
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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.
About Assurant
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 (News - Alert) @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.

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