{"id":55852,"date":"2022-10-26T13:58:17","date_gmt":"2022-10-26T17:58:17","guid":{"rendered":"https:\/\/thelehighacresgazette.com\/news\/?p=55852"},"modified":"2022-10-26T13:58:28","modified_gmt":"2022-10-26T17:58:28","slug":"assurant-reveals-hurricane-ian-loss-has-eroded-two-layers-of-its-cat-reinsurance-tower","status":"publish","type":"post","link":"https:\/\/thelehighacresgazette.com\/news\/2022\/10\/assurant-reveals-hurricane-ian-loss-has-eroded-two-layers-of-its-cat-reinsurance-tower\/","title":{"rendered":"Assurant reveals Hurricane Ian loss has eroded two layers of its cat reinsurance tower"},"content":{"rendered":"
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US specialty insurer Assurant, Inc. has announced expected pre-tax catastrophe losses of $124 million for the third quarter of 2022 primarily related to Hurricane Ian, which includes the $80 million per-event retention and $35 million of reinstatement premiums to restore up to the third layer of its U.S. catastrophe reinsurance program.<\/p>\n\n\n\n

In July, Assurant completed its mid-year property cat reinsurance renewal<\/a>, securing $1.16 billion of protection in excess of an $80 million retention for a first event, with the retention coming down to $55 million for a second and third event.<\/p>\n\n\n\n

Announcing its preliminary third quarter financial results, the global business services firm says that it expects to incur reportable cat losses of $124 million for the quarter, driven mostly by Hurricane Ian.<\/p>\n\n\n\n

Above the $80 million pre-tax per-event retention of its U.S. cat reinsurance tower, which you can see below, sits a $30 million layer one and $50 million layer two, which have both been eroded as the firm confirmed that losses are into the third layer, although it\u2019s unclear by how much. The third layer covers 50% of losses from $160 million up to $235 million.<\/p>\n\n\n\n

Further, with losses into layer three, it suggests Ian has eaten into some of the firm\u2019s multiyear reinsurance protection as well, which covers 67% of layers three to six.<\/p>\n\n\n\n

It\u2019s unclear exactly where Assurant\u2019s reinsurance recoveries from the event will fall, but it seems that they will be somewhere above the top of layer two, so $80 million, and up to $155 million, depending how far into the third layer of coverage losses from the event have ended up.<\/p>\n\n\n\n

It\u2019s also likely that Assurant has tapped its Florida Hurricane Catastrophe Fund (FHCF) backed reinsurance as well, which after an $86 million retention, covers 90% of losses up to $200 million.<\/p>\n\n\n\n

Combined with the FHCF participation, Assurant\u2019s U.S. cat reinsurance program provides protection against gross Florida losses of up to approximately $1.34 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"

US specialty insurer Assurant, Inc. has announced expected pre-tax catastrophe losses of $124 million for the third quarter of 2022 primarily related to Hurricane Ian, which includes the $80 million… <\/p>\n","protected":false},"author":8,"featured_media":55853,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[1864],"_links":{"self":[{"href":"https:\/\/thelehighacresgazette.com\/news\/wp-json\/wp\/v2\/posts\/55852"}],"collection":[{"href":"https:\/\/thelehighacresgazette.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thelehighacresgazette.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thelehighacresgazette.com\/news\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/thelehighacresgazette.com\/news\/wp-json\/wp\/v2\/comments?post=55852"}],"version-history":[{"count":2,"href":"https:\/\/thelehighacresgazette.com\/news\/wp-json\/wp\/v2\/posts\/55852\/revisions"}],"predecessor-version":[{"id":55855,"href":"https:\/\/thelehighacresgazette.com\/news\/wp-json\/wp\/v2\/posts\/55852\/revisions\/55855"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thelehighacresgazette.com\/news\/wp-json\/wp\/v2\/media\/55853"}],"wp:attachment":[{"href":"https:\/\/thelehighacresgazette.com\/news\/wp-json\/wp\/v2\/media?parent=55852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thelehighacresgazette.com\/news\/wp-json\/wp\/v2\/categories?post=55852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thelehighacresgazette.com\/news\/wp-json\/wp\/v2\/tags?post=55852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}