Item 7.01. Regulation FD Disclosure.
On
2022 Catastrophe Reinsurance Program Summary
The Company successfully placed over
2022 U.S. Program Key Highlights
•TheU.S. program provides$1.16 billion of coverage(1) in excess of a$80 million retention per event, predominantly reflecting increased lender-placed exposure as a result of higher average insured values compared to 2021. Total program coverage protects against a projected probable maximum loss of approximately a 1-in-174-year storm, while the$80 million per event retention protects against a 1-in-3-year storm, based on projected modeled loss estimates(2). •When combined with theFlorida Hurricane Catastrophe Fund , theU.S. program protects against grossFlorida losses of up to approximately$1.34 billion . •The Company continued to strategically assess ways to reduce its risk exposure, including the decision to exit the remainder of its program inLatin America as the business did not meet risk-return expectations. •Overall, the majority of Assurant's business is not exposed to catastrophe losses and therefore, combined with the comprehensive 2022 catastrophe reinsurance program, in a 1-in-50-year season the Company would expect to retain approximately 75% of Adjusted EBITDA compared to approximately 54% in 2018. •Multiyear reinsurance contracts cover approximately 45% of theU.S. program, reducing volatility in future reinsurance costs. •Layers 2 through 7 allow for one automatic reinstatement; Layer 1 has two reinstatements. •TheU.S. program maintains its unique cascading feature that provides multi-event protection in which higher coverage layers (Layers 3 through 6) cascade down to$110 million as the lower layers and reinstatement limits are exhausted. •2022 reinsurance premiums for the total program are estimated to be approximately$189 million pre-tax(3) based on current estimated exposure. •Coverage was placed with more than 40 reinsurers that are all rated A- or better byA.M. Best . -2-
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[[Image Removed: aiz-20220706_g1.jpg]] (1)The 2022 Catastrophe Reinsurance Program also includes coverage in theCaribbean of up to$150 million in excess of$20 million . Renewals are subject to changes in coverage amount, retention and cost. (2)Probable Maximum Loss is projected based on estimatedDecember 31, 2022 exposure and a blend of industry modeling tools. Actual losses may differ materially from projections. (3)Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events. Total pre-tax dollar amount includesCaribbean coverage. (4)The risk retained by the Company for theFlorida Hurricane Catastrophe Fund ("FHCF") is applied to the mainU.S. program retention. The FHCF inures to the benefit of the mainU.S. program. Once exhausted, there is no reinstatement of the FHCF coverage. (5)Layer 2 has a co-participation of$5 million pre-tax.
Cautionary Statement
Some of the statements included in this Form 8-K may constitute forward-looking
statements within the meaning of the
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits Exhibit No. Exhibit The cover page from this Current Report on Form 8-K, formatted in Inline 104 XBRL. -3-
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