Assurant increases reinsurance cover to reduce cat exposure
US-based Assurant has reduced its catastrophe exposure with increased reinsurance protection, in an attempt to produce more predictable earnings and cash flow, according to Alan Colberg, president and CEO at Assurant.
Assurant’s finalised 2019 property catastrophe reinsurance program saw a significant reduction in its per-event retention to $80 million. Reinsurance premiums for the program are estimated to be approximately $165 million before tax in 2019, with 45 reinsurers sharing the business between them.
“When combined with the Florida Hurricane Catastrophe Fund, the program is covered for gross Florida losses of up to $1.4 billion,” the company said.
Assurant said its US program provides $1.16 billion of coverage in excess of a $80 million retention per-event, with a projected probable maximum loss of approximately a 1-in-173-year storm, based on projected modeled loss estimates.
The program will protect more than 3 million homeowners and renters policyholders against severe weather and other hazards, Assurant said.