Assurant, Inc. (NYSE:AIZ) Files An 8-K Regulation FD DisclosureItem 7.01Regulation
Assurant, Inc. (“Assurant” or the “Company”) announced today that it expects to record between $287million – $293million pre-tax, or $187 million – $191million after-tax, of reportable catastrophes related to Hurricanes Harvey, Irma and Maria for third quarter 2017. The Company’s reportable catastrophes include individual catastrophic events that generate losses in excess of $5million, pre-tax and net of reinsurance.
Below is a table summarizing the expected losses from Hurricane Harvey, Irma and Maria:
|
Event |
Assurant3Q17reportablecatastrophes¹ (Pre-tax – $M) |
|
Hurricane Harvey |
$127-$129 |
|
Hurricane Irma² |
$137-$139 |
|
Hurricane Maria² |
$23-$25 |
| Represents catastrophe losses net of reinsurance and client profit sharing adjustments and including reinstatement and other premiums. |
| ² | Hurricanes Irma and Maria losses include the $17.5million of Caribbean reinsurance retention. |
Hurricane Harvey losses were primarily in the state of Texas and were driven by flooding, while wind was a secondary contributor. As a result of the significant flooding in Texas, total expected losses of $127 million – $129million include $7 million – $9million, net of client profit sharing adjustments, primarily related to vehicle protection products in Global Life>
Hurricane Maria was the third major hurricane of the year in the Atlantic and losses were driven by heavy wind and water damage to the islands of Puerto Rico, US Virgin Islands, and Dominica between September18 through 21, 2017. The Company expects gross losses will exceed the retention for its Caribbean Reinsurance Program of $17.5million pre-tax but likely remain within the Caribbean program limit of $170million based on current estimates. The Company will update estimates, as more information from Puerto Rico becomes available.
Following Hurricane Maria, the Company secured additional Caribbean reinsurance covering $27.5million in excess of our $17.5million retention at a cost of $4.4million pre-tax to replace coverage exhausted by Hurricanes Irma and Maria.
In addition, on September19, 2017, there was a 7.1 magnitude earthquake that struck south central Mexico. The Latin America reinsurance program covers losses up to $183.5million in excess of a $7million retention. The Company expects approximately $4million pre-tax loss related to this event for third quarter 2017. This does not meet the Company’s $5million, pre-tax threshold for reportable catastrophe losses, but will be included in third quarter 2017 financial results and increase non-catastrophe losses.
The Company will report third quarter 2017 results on November2, 2017.
CAUTIONARY STATEMENT — Some of the statements included in this Form 8-K, particularly estimated reportable catastrophe losses and their expected impact on the Company’s catastrophe reinsurance program (including program limits) as well as estimated non-catastrophe losses, may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s best estimates, assumptions and projections and are subject to significant uncertainties. Actual results may differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update any forward-looking statements in this Form 8-K as a result of new information or future events or developments. For a detailed discussion of the general risk factors that could affect the Company’s results, please refer to the risk factors identified in the Company’s annual and periodic reports as filed with the U.S. Securities and Exchange Commission.
About Assurant, Inc. (NYSE:AIZ)
Assurant, Inc. is a provider of specialty protection products and related services. The Company’s segments include Assurant Solution, Assurant Specialty Property and Corporate & Other. The Assurant Solutions segment provides mobile device protection products and services; debt protection administration; credit insurance; extended service products and related services for consumer electronics, appliances and vehicles, and offers pre-funded funeral insurance. The Assurant Specialty Property segment provides lender-placed homeowners insurance; property preservation and valuation services; flood insurance; renters insurance and related products, and manufactured housing homeowners insurance. The Corporate & Other segment includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments and interest income earned from short-term investments held.