Assurant Inc., a provider of specialty insurance and insurance-related products and services, has purchased additional reinsurance coverage as part of its catastrophic reinsurance program.
The company is still assessing the total amount of claims related to Hurricane Katrina; however, its reinsurance coverage goes up to $210 million of total loss, or $185 million in excess of a $25 million deductible. The company expects claims from Hurricane Katrina to fall within reinsurance coverage limits.
As part of the current program, the company has an automatic reinstatement for a second event under the same terms as the first event.
Due to the unusually active hurricane season, the company recently purchased coverage for a third event under similar terms to the current program. This coverage also has an automatic reinstatement feature for a fourth event.
In addition, the company’s catastrophic reinsurance program has aggregate reinsurance coverage of up to $20 million for claims paid in excess of $25 million on multiple qualifying events. A qualifying event is a catastrophe where the company pays at least $5 million.
The company notes, that its reinsurance program may differ in future years.