Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Hurricane Ida losses hit Assurant’s reinsurance tower


Losses from recent hurricane Ida have reached the per-event retention level in Assurant’s reinsurance program, while the company also said it had to pay a premium to reinstate the second layer of its tower.

Which suggests that Assurant’s hurricane Ida losses have risen through the first layer of its catastrophe reinsurance tower and eaten into its second, causing the reinstatement premiums to need paying.

assurant-reinsurance-towerAssurant’s per-occurrence catastrophe reinsurance tower (right) features an $80 million retention, on top of which is a $30 million first layer, followed by a $50 million second layer.

Assurant said that it expects to record around $99 million pre-tax, or $78 million after-tax, of catastrophe losses in its Global Housing segment for the third-quarter of 2021.

Hurricane Ida accounted for $87 million of total pre-tax losses, so the majority, as the hurricane reached Assurant’s $80 million pre-tax per-event retention, the company explained.

Assurant further explained that, “This also includes associated reinstatement premiums to restore the second layer of the Company’s catastrophe reinsurance program.”

Which suggests that the hurricane Ida loss has risen above the $110 million level, where the second layer of its per-occurrence reinsurance tower attaches.

The rest of Assurant’s third-quarter catastrophe losses were primarily related to the wildfires in California, the insurer said.

After Q3, Assurant’s per-event retention for second and third events now drops down to $55 million for hurricane and earthquake perils only.

Assurant said that its third-quarter losses were primarily in its lender-placed and manufactured housing products, with hurricane Ida losses driven by heavy wind and, to a lesser extent, flooding, mainly in Louisiana.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.