Assurant seals $1.36bn P&C reinsurance deal

New York-based risk management solutions provider Assurant said July 10 that it finalised a $1.36 billion property catastrophe reinsurance program.

Base reinsurance premiums for Assurant’s 2017 global catastrophe program are estimated to be $125.6 million, compared to $132.6 million in 2016. Lower premiums were driven by improved market pricing as well as a reduction in limits due to Assurant’s lower exposure from lender-placed insurance as that business continues to normalize, according to a company statement.

“Managing risks is a core competency for Assurant, and again this year our catastrophe reinsurance program contains strong terms and conditions at attractive rates,” said executive vice president and chief risk officer Christopher Pagano. “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.”

Assurant placed its 2017 property catastrophe reinsurance programme with more than 40 reinsurers.

The US catastrophe per-occurrence programme coverage includes a main reinsurance programme providing $1.03 billion of coverage in excess of a $125 million retention. A multiyear reinsurance contract covers a portion of the $895 million layer in excess of $260 million through 2018. All layers of the programme 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, the company said.

The programme also includes Florida Hurricane Catastrophe Fund coverage for losses up to 90 percent of $324 million in excess of a $100 million retention.

The international per-occurrence catastrophe coverage has increased as Assurant expanded its business in select property markets. Assurant bought Latin America protection of up to $183.5 million in excess of a $4.5 million retention, and Caribbean protection of up to $152.5 million in excess of a $17.5 million retention. In these regions, Assurant’s product offerings are primarily residential dwelling policies covering the structure and contents.

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