In its outlook for 2025, US specialty insurance group Assurant has reported that its catastrophe losses from the California wildfires are expected to “approach or slightly exceed” its per-event catastrophe reinsurance program retention of $150 million.
The firm issued this update on the impact of the Los Angeles wildfires as part of its results for the fourth quarter and full year 2024.
Assurant generated a 10% GAAP net income increase to $201.3 million for the fourth quarter of 2024, compared to $182.5 million in Q4 2023. For the full year 2024, there was an 18% increase to $760.2 million, compared to the full year 2023 net income of $642.5 million.
For both periods the increase was driven by higher global housing segment earnings, lower foreign exchange impact, and lower restructuring costs.
Higher reportable catastrophes, lower global lifestyle results, and higher net realized losses on investments also impacted the increase in Q4. Whereas for FY 2024, higher reportable catastrophes and higher depreciation expense played a role, says the firm.
Q4 2024 saw a net earned premiums, fees and other income from the global lifestyle and housing segments of $2.99 billion compared to $2.85 billion in Q4 2023, up 5% driven by growth in global housing. For FY 2024, the same segments totalled $11.42 billion compared to $10.70 billion for the prior year period, up 7%, on both a reported and constant currency basis, driven by growth in global lifestyle from connected living and growth in global housing from homeowners.
Assurant confirmed that Q4 2024 results included $28.5 million of higher pre-tax reportable catastrophes, and for the full year 2024, $135.2 million in higher pre-tax reportable catastrophes.
For Q4 2024, GAAP net income per diluted share increased by 13% to $3.87 also driven by the higher share repurchases. The Adjusted EBITDA saw a 6% increase to $381.4 million compared to the prior year period of $360.8 million.
For 2024, GAAP net income per diluted share increased by 21% to $14.46 compared to FY 2023’s $11.95, due to higher share repurchases.
Keith Demmings, President and Chief Executive Officer, Assurant, commented, “2024 was a testament to the power of our differentiated business model as we delivered strong results, led by continued outperformance in Global Housing as well as underlying Connected Living growth within Global Lifestyle.
“Our momentum with clients is at an all-time high following significant multi-year contract renewals and the addition of several new partnerships with industry leaders – demonstrating the trust placed in Assurant and the value of our products and services for our clients and their customers.
“As we enter 2025, Assurant is focused on executing our growth strategy as we scale new partnerships, invest in product innovation, and accelerate emerging growth opportunities. As we further elevate the customer experience, we believe we are well-positioned to continue our track record of growth,” Demmings added.
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