US specialty insurance group Assurant has completed its April 2024 reinsurance renewal early, purchasing $1.38 billion of catastrophe protection in excess of a $150 million retention, which is $25 million higher than last year.
Assurant has shifted its June 1 renewal to April 1, consolidating its reinsurance buying into a single placement date for 2024.
In this initial transition year, it secured virtually all of its coverage by January 2024, and decided to increase the limit to $1.38 billion for 2024 from $1.28 billion in 2023, and also increase the retention from $125 million to $150 million.
The company confirms that all layers of the 2024 program allow for one automatic reinstatement, while the coverage amount from the Florida Hurricane Catastrophe Fund (FHCF) for the 2024 wind season will be finalized by June.
Another change from last year is that Assurant does not expect to renew its Caribbean excess cat treaty for 2024 due to “greatly reduced exposure in the region.”
Last year, the firm’s cat reinsurance program included a Caribbean catastrophe coverage providing up to $55 million, in excess of a $5 million retention.
For 2023, when combined with the FHCF, the U.S. program was covered for gross Florida losses of up to approximately $1.58 billion.
The firm explained that for its 2024 catastrophe reinsurance program, “underlying rates are favourable from improved reinsurance market conditions.”
So, for 2024, Assurant has $100 million more in reinsurance limit for catastrophe losses (before FHCF coverage), while the program attaches slightly higher than last year as well, when the retention remained at $125 million for consecutive years.
