US specialty insurance group Assurant expects to record roughly $50 million pre-tax, or $39 million after-tax, of catastrophes losses in its global housing segment for first quarter 2023.
Most of the losses from catastrophic events that needed to be reported were related to lender-placed products and resulted from severe weather and tornado incidents in the US, with a couple of these incidents taking place towards the end of March 2023.
The majority of claims were due to damage caused by wind and hail, Assurant said, in its statement to the SEC.
The estimate includes other cat events that generated losses in excess of $5 million, pre-tax, net of reinsurance.
Assurant in July 2022, finalised its 2022 property catastrophe reinsurance program, successfully placing $1.16 billion in loss coverage within its main U.S. program. At the same time, the company maintained an $80 million retention per event, limiting its financial exposure against severe weather and other hazards.
The company expects to report its full first-quarter 2023 results on May 2.
