Assurant Announces $1.36 Billion 2017 Property Catastrophe Reinsurance Program
July 10 2017 - 4:15PM
Business Wire
Protecting 2.8 Million Policyholders
Worldwide at Lower Costs
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.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170710006249/en/
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
- 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. Specifics include:
- 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.
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 @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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170710006249/en/
Assurant, Inc.Media:John M. Moran, 212.859.7002Vice
President, External Communicationjohn.m.moran@assurant.comorInvestor
Relations:Sean Moshier, 212.859.5831Manager, Investor
Relationssean.moshier@assurant.com
Assurant (NYSE:AIZ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Assurant (NYSE:AIZ)
Historical Stock Chart
From Apr 2023 to Apr 2024