Assurant Inc.has finalized a $1.4 billion property catastrophe reinsurance program for 2016.
Base reinsurance premiums for the global catastrophe programare estimated to be $140 million in 2016, compared with $162 million in the previousyear. Improved market pricing and Assurant's lower exposure from lender-placed insurancedrove the lower premiums.
Assurant's U.S. retention dropped almost 20% year over year to$125 million, mainly due to the lower lender-placed insurance exposure. U.S. per-occurrencecatastrophe coverage provides $1.1 billion of protection in excess of the $125 millionretention. All program layers provide the option for automatic reinstatement andinclude a cascading feature to provide multievent protection. The Florida HurricaneCatastrophe Fund covers losses up to 90% of $392 million in excess of a $123 millionretention.
As Assurant expanded its business in certain property markets,Caribbean and Latin America catastrophe coverage increased. The program providescoverage in Latin America of up to $151.5 million in excess of $4.5 million retentionand in the Caribbean of up to $145 million in excess of $15 million retention.