Assurant, Inc. (NYSE:AIZ) Files An 8-K Regulation FD DisclosureItem 7.01.
Estimated Reportable Catastrophe Losses for Fourth Quarter 2016
Assurant, Inc. (“Assurant”) announced that as of Dec. 30, 2016, the company now expects to record approximately $66 million pre-tax of reportable fourth quarter 2016 catastrophe losses, net of reinsurance, or $43 million after-tax, all related to Hurricane Matthew. Reportable catastrophe losses for Assurant include individual Insurance Services Office (ISO) defined catastrophic events in which losses exceed $5 million pre-tax, net of reinsurance. This event included wind and flooding with losses spread across North and South Carolina, Florida, Georgia, Virginia and the Bahamas.
Settlement Agreements Related to Lender-Placed Market Conduct Examinations
Assurant also announced that it reached agreement with the relevant regulators on the settlement of the previously disclosed lender-placed insurance multistate targeted market conduct examination authorized by the National Association of Insurance Commissioners (the “multistate agreement”) and a separate agreement with the Minnesota Department of Commerce to settle its lender-placed insurance market conduct examination (together, with the multistate agreement, the “agreements”). The effectiveness of the multistate agreement is subject to the fulfillment of certain conditions, including the acceptance by states representing a specified aggregate level of lender-placed insurance premium during the examination period, and the taking effect of a similar agreement with another significant carrier in the lender-placed market. The company believes both conditions will likely be fulfilled in the first half of 2017.
The agreements resolve outstanding regulatory matters related to lender-placed insurance within the scope of the examinations and will align lender-placed business practices with procedures already implemented across much of Assurant’s lender-placed business. Once the agreements take effect, Assurant will pay approximately $85 million to the participating jurisdictions for examination, compliance and monitoring costs, no part of which shall constitute a fine or penalty; this is expected to result in an approximate $30 million pre-tax charge, or $20 million after-tax, in the fourth quarter of 2016; the balance of the settlement payments are covered by previously established reserves.
In accordance with the multistate market conduct examination settlement, Assurant also will re-file its lender-placed insurance rates at least once every four years, and modify certain lender-placed business practices to which other significant providers in the lender-placed market will also be subject. Assurant expects the state insurance regulatory agency also to impose similar requirements and restrictions on other existing writers of lender-placed insurance and future entrants.
Cautionary Note Regarding Forward-Looking Statements. Some of the statements included in this filing, particularly estimated reportable catastrophe losses and estimated charges related to the multistate and Minnesota agreements, may be 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. Assurant undertakes no obligation to update any forward-looking statements as a result of new information or future events or developments. For a detailed discussion of the general risk factors that could affect our results, please refer to the risk factors identified in our annual and periodic reports, including but not limited to our 2015 Annual Report on Form 10-K and our First Quarter Report on Form 10-Q, 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. Assurant, Inc. (NYSE:AIZ) Recent Trading Information
Assurant, Inc. (NYSE:AIZ) closed its last trading session up +0.21 at 92.86 with – shares trading hands.
