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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 6,
2022
Assurant, Inc.
(Exact Name of Registrant as Specified in its Charter)
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Delaware |
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001-31978 |
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39-1126612 |
(State or Other Jurisdiction
of Incorporation) |
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(Commission
File Number) |
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(I.R.S. Employer
Identification No.) |
55 Broadway, Suite 2901
New York, New York 10006
(212) 859-7000
(Address, including zip code, and telephone number, including area
code, of Registrant's Principal Executive Offices)
N/A
(Former Name or Former Address, if Changed Since Last
Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
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☐
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Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the
Act:
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Title of Each Class |
Trading Symbol(s) |
Name of Each Exchange on Which Registered |
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Common Stock, $0.01 Par Value |
AIZ |
New York Stock Exchange |
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5.25% Subordinated Notes due 2061 |
AIZN |
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933
(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange
Act. ☐
Item 7.01. Regulation FD
Disclosure.
On July 6, 2022, Assurant, Inc. (the “Company”) announced that it
has finalized its 2022 property catastrophe reinsurance
program.
2022 Catastrophe Reinsurance Program Summary
The Company successfully placed over $1 billion in loss coverage
within its main U.S. program while maintaining an $80 million
retention per event, limiting the Company’s financial exposure
against severe weather and other hazards. In addition, the Company
was able to mitigate pricing impacts compared to the broader market
given the strength of its partnerships with over 40 reinsurers and
its use of multiyear coverage.
2022 U.S. Program Key Highlights
•The
U.S. program provides $1.16 billion of coverage(1)
in excess of a $80 million retention per event, predominantly
reflecting increased lender-placed exposure as a result of higher
average insured values compared to 2021. Total program coverage
protects against a projected probable maximum loss of approximately
a 1-in-174-year storm, while the $80 million per event retention
protects against a 1-in-3-year storm, based on projected modeled
loss estimates(2).
•When
combined with the Florida Hurricane Catastrophe Fund, the U.S.
program protects against gross Florida losses of up to
approximately $1.34 billion.
•The
Company continued to strategically assess ways to reduce its risk
exposure, including the decision to exit the remainder of its
program in Latin America as the business did not meet risk-return
expectations.
•Overall,
the majority of Assurant’s business is not exposed to catastrophe
losses and therefore, combined with the comprehensive 2022
catastrophe reinsurance program, in a 1-in-50-year season the
Company would expect to retain approximately 75% of Adjusted EBITDA
compared to approximately 54% in 2018.
•Multiyear
reinsurance contracts cover approximately 45% of the U.S. program,
reducing volatility in future reinsurance costs.
•Layers
2 through 7 allow for one automatic reinstatement; Layer 1 has two
reinstatements.
•The
U.S. program maintains its unique cascading feature that provides
multi-event protection in which higher coverage layers (Layers 3
through 6) cascade down to $110 million as the lower layers and
reinstatement limits are exhausted.
•2022
reinsurance premiums for the total program are estimated to be
approximately $189 million pre-tax(3)
based on current estimated exposure.
•Coverage
was placed with more than 40 reinsurers that are all rated A- or
better by A.M. Best.
(1)The
2022 Catastrophe Reinsurance Program also includes coverage in the
Caribbean of up to $150 million in excess of $20 million. Renewals
are subject to changes in coverage amount, retention and
cost.
(2)Probable
Maximum Loss is projected based on estimated December 31, 2022
exposure and a blend of industry modeling tools. Actual losses may
differ materially from projections.
(3)Actual
reinsurance premiums will vary if exposure changes significantly
from estimates or if reinstatement premiums are required due to
catastrophe events. Total pre-tax dollar amount includes Caribbean
coverage.
(4)The
risk retained by the Company for the Florida Hurricane Catastrophe
Fund (“FHCF”) is applied to the main U.S. program retention. The
FHCF inures to the benefit of the main U.S. program. Once
exhausted, there is no reinstatement of the FHCF
coverage.
(5)Layer
2 has a co-participation of $5 million pre-tax.
Cautionary Statement
Some of the statements included in this Form 8-K may constitute
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Any forward-looking
statements contained in this Form 8-K are based upon the Company’s
historical performance and on current plans, estimates and
expectations. The inclusion of this forward-looking information
should not be regarded as a representation by the Company or any
other person that the Company’s future plans, estimates or
expectations will be achieved. Actual results may differ materially
from those projected in the forward-looking statements. The Company
undertakes no obligation to update or review any forward-looking
statements, whether as a result of new information, future events
or other developments. For additional information on factors that
could affect the Company’s actual results, please refer to the
factors identified in the reports that the Company files with the
U.S. Securities and Exchange Commission (the “SEC”), including the
risk factors identified in the Company’s most recent Annual Report
on Form 10-K and Quarterly Reports on Form 10-Q, each as filed with
the SEC.
Item 9.01. Financial Statements and
Exhibits.
(d) Exhibits
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Exhibit No. |
Exhibit |
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104 |
The cover page from this Current Report on Form 8-K, formatted in
Inline XBRL. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly
authorized.
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ASSURANT, INC. |
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Date: July 6, 2022 |
By: |
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/s/ Jay Rosenblum |
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Jay Rosenblum |
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Executive Vice President, Chief Legal Officer
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