Assurant has finalised its 2023 property catastrophe reinsurance program, successfully placing $1.28bn in loss coverage within its main US program, which compares to the $1.16bn the specialty insurer placed in 2022.
At the same time, the company has maintained a $125m retention for a first event, with retention level dropping to $100m for a second and third event. Compared to last year, when it was $80m retention per event, these figures have significantly risen.
The total program coverage also now protects against a projected probable maximum loss (PML) of approximately a 1-in-225-year storm compared to a 1-in-174-year PML in 2022 as the company was able to secure additional coverage at attractive terms, while the $125m first event retention protects against a 1-in-5-year storm.
Additionally, when combined with the Florida Hurricane Catastrophe Fund, the US program protects against gross Florida losses of up to approximately $1.58bn, including additional coverage in 2023 from the Reinsurance to Assist Policyholders program created by the Florida Legislature.
Layers 1 through 7 allow for one automatic reinstatement; and the 2023 reinsurance premiums for the total program are estimated to be approximately $200m pre-tax based on current estimated exposure.
This year’s property catastrophe reinsurance program demonstrates the strength of Assurant partnerships with over 40 reinsurers, the insurer stated.
Adding: “The Company was able to mitigate price increases from the challenging reinsurance market through several key actions, including the exit of international business, optimising product structures and the ongoing benefit of multiyear coverage.
“The 2023 catastrophe reinsurance program continues to address both severity and frequency, limiting the Company’s financial exposure and protecting over 3m policyholders against severe weather and other hazards.”
