Assurant Inc. expects to record pretax reportable catastrophe losses from hurricanes Harvey, Irma and Maria of $287 million to $293 million, or $187 million to $191 million after tax, in the third quarter.
The reportable catastrophes include individual events that generated losses of more than $5 million pretax and net of reinsurance.
The company's pretax reportable catastrophe losses are expected to be $127 million to $129 million from Hurricane Harvey, mainly in Texas and caused by flooding. Wind was a secondary contributor. Of the expected losses from Harvey, $7 million to $9 million, net of client profit-sharing adjustments, primarily relate to vehicle protection products in the global lifestyle segment, with the rest in the global housing segment.
The company expects pretax reportable catastrophe losses of $137 million to $139 million from Hurricane Irma and $23 million to $25 million from Hurricane Maria. Irma losses were driven by wind, mostly in Florida and the Caribbean. Losses from Maria were driven by major wind and water damage to Puerto Rico, the U.S. Virgin Islands and Dominica. Losses from hurricanes Irma and Maria include $17.5 million of Caribbean reinsurance retention. Assurant expects gross losses from Maria to exceed the retention for the Caribbean reinsurance program of $17.5 million pretax, but they will likely stay within the program limit of $170 million based on current estimates.
After Hurricane Maria, Assurant secured additional Caribbean reinsurance to cover $27.5 million in excess of the $17.5 million retention at a cost of $4.4 million pretax to replace coverage exhausted by hurricanes Irma and Maria.
All the estimates are net of reinsurance and client profit-sharing adjustments and include reinstatement and other premiums.
Additionally, Assurant expects about $4 million in pretax losses in the third quarter related to an earthquake in Mexico on Sept. 19. The company's Latin America reinsurance program covers losses up to $183.5 million in excess of a $7 million retention. Its expected losses from the event do not meet the $5 million pretax threshold for reportable catastrophe losses but will be included in third-quarter results and will increase noncatastrophe losses.