Assurant has finalised its 2022 property catastrophe reinsurance program, successfully placing $1.16bn in loss coverage within its main U.S. program.
At the same time, the company has maintained an $80m retention per event, limiting its financial exposure against severe weather and other hazards.
In addition, the company said it was able to mitigate pricing impacts compared to the broader market given the strength of its partnerships with over 40 reinsurers and its use of multiyear coverage.
Assurant’s 2022 reinsurance tower can be seen below:
Last year, the firm went for just $965m in loss coverage in excess of a $80 million retention for a first event, with retention lowering to $55 million for a second and third event.
At the same time, the company increased its multiyear coverage to account for approximately 52% of its total U.S. Program and strategically exited certain international programs.
In its statement to the SEC, Assurant said: “In addition, the company was able to mitigate pricing impacts compared to the broader market given the strength of its partnerships with over 40 reinsurers and its use of multiyear coverage.”
The firm said that its total program coverage protects against a projected probable maximum loss of approximately a 1-in-174-year storm, while the $80m per event retention protects against a 1-in-3-year storm, based on projected modelled loss estimates.
Combined with the Florida Hurricane Catastrophe Fund, the U.S. program protects against gross Florida losses of up to approximately $1.34bn.