Assurant, a global provider of lifestyle and housing risk management products, has finalised its 2020 property catastrophe reinsurance programme.
The programme limits Assurant’s financial exposure and protects more than three million homeowners and renters policyholders against severe weather and other hazards.
It provides $930 million of coverage in excess of an $80 million retention per-event, with a projected probable maximum loss of approximately a 1-in-174-year storm, based on projected modeled loss estimates.
When combined with the Florida Hurricane Catastrophe Fund, the programme is covered for gross Florida losses of up to $1.15 billion.
The programme also maintains a cascading feature that provides multi-event protection in which most higher coverage layers cascade down to $110 million as the lower layers and reinstatement limits are exhausted.
Reinsurance premiums for this program are estimated to be approximately $138 million pre-tax, compared with $163 million pre-tax for 2019, reflecting the exit from small commercial and a modest reduction in lender-placed exposure.
Coverage was placed with more than 40 reinsurers that are all rated A- or better by A.M. Best.
Alan Colberg, president and chief executive officer at Assurant, said: “At Assurant, not only is our commitment to social responsibility critical, but we believe we have an obligation to strengthen and protect the communities where we work and live for all of our stakeholders, including our customers and consumers.”
The catastrophe reinsurance programme demonstrates this commitment, he added.
Michael Campbell, president of Global Housing, said: “This year, our strong reinsurance partnerships enabled us to increase our multi-year coverage to nearly 50 percent of our total US programme, while maintaining our $80 million per-event retention at attractive terms and conditions, compared to the broader market.”
Global Housing exited businesses that do not meet its risk-return expectations, allowing it to lower its overall tower limit by $230 million, Campbell added.
Assurant, Global Housing, Alan Colberg, Michael Campbell