Assurant, Inc. has announced the completion of its 2017, $1.36 billion per-occurrence property catastrophe reinsurance program, enabling the firm to protect 2.8 million homeowners and renters policyholders against catastrophe risks.
Assurant, an international provider of risk management solutions, explains that its 2017 global, property catastrophe reinsurance program includes base reinsurance premiums of an estimated $125.6 million, compared with $132.6 million in 2016.
In a statement, Assurant says that lower premiums were a result of improved market pricing and a reduction in limit in response to Assurant’s reduced exposure from lender-placed insurance business, which continues to normalise.
Christopher J. Pagano, Executive Vice President (EVP) and Chief Risk Officer (CRO), Assurant, said; “Assurant’s 2017 reinsurance program helps ensure we can support our policyholders at their time of need when catastrophe strikes.”
The firm’s 2017 property catastrophe reinsurance program consists of U.S. and international per-occurrence coverage.
The U.S. agreement includes a main reinsurance program that provides $1.03 billion of coverage, in excess of $125 million. A multi-year reinsurance placement that covers a portion of the $895 million layer, excess $260 million, through 2018, and Florida Hurricane Catastrophe Fund (FHCF) protection for losses up to 90% of $324 million, in excess of a $100 million retention.
Furthermore, all layers “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,” explains Assurant.
Pagano, continued; “Managing risks is a core competency for Assurant, and again this year our catastrophe reinsurance program contains strong terms and conditions at attractive rates. 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.”
When compared with last year, Assurant’s international per-occurrence catastrophe reinsurance coverage increased, as the firm looks to expand in specific property markets. The firm secured Latin America protection of up to $183.5 million, excess a $4.5 million retention, and also Caribbean coverage of up to $152.5 million, in excess of $17.5 million.
Assurant explains that in these markets its offerings are mostly residential dwelling policies that protect against both the structure and contents.
The firm’s 2017 property catastrophe reinsurance program was placed with over 40 reinsurance companies that are all rated A- or better, by A.M. Best.