Business Context and Reporting Period
Company: Assurant, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 19, 2018
Item: 7.01 Regulation FD Disclosure
Context: The Company announced an update regarding expected reportable catastrophe losses for the fourth quarter of 2018 within its Global Housing segment.
Key Financial Metrics
The filing provides specific estimates for pre-tax catastrophe losses but does not report overall revenue, profit, cash flow, margins, debt, or liquidity metrics for the period.
| Event | Expected Reportable Catastrophe Losses (Pre-tax, in millions) |
|---|---|
| Hurricane Michael | $80 - $100 |
| California Fires (Camp Fire and Woolsey Fire) | $30 - $50 |
| Total 4Q18 Expected Losses | $110 - $150 |
Note: Reportable catastrophes are defined as individual events generating losses in excess of $5 million, pre-tax and net of reinsurance, including reinstatement and other premiums.
Material Changes and Drivers
- California Wildfires: Losses driven primarily by fire damage to lender-placed and manufactured housing products.
- Hurricane Michael: Losses related to wind damage affecting lender-placed and other housing products.
- Refinement: The filing includes a refined loss range for Hurricane Michael (October 2018) and an initial view for the November California fires.
Guidance, Outlook, and Risks
- Reporting Timeline: Actual reportable catastrophe losses will be reported on February 12, 2019, as part of the fourth quarter 2018 results.
- Forward-Looking Statements: The loss estimates are based on management's best estimates and assumptions and are subject to significant uncertainties.
- Risk Factors: Actual results may differ materially from projections. The Company undertakes no obligation to update these statements based on new information.
Investor Verification Checklist
- Verify the final actual loss figures when reported on February 12, 2019.
- Confirm the impact of the $110-$150 million loss range on the full-year 2018 earnings per share and net income.
- Review the reinsurance recoveries and reinstatement premiums associated with these specific events in the upcoming quarterly report.
- Assess the exposure of the Global Housing segment to future wildfire and hurricane risks in California and the Southeastern U.S.