Business Context and Reporting Period
Company: Assurant, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 18, 2012
Event: Estimation of reportable catastrophe losses related to Superstorm Sandy.
Key Financial Metrics
- Estimated Catastrophe Losses (Superstorm Sandy): $200 million to $220 million (pre-tax, net of reinsurance).
- Loss Composition: Principal cause was flood, along with wind and water damage.
- Geographic Concentration: Coastal communities of New York and New Jersey.
- Reinsurance Status: The Company does not expect to exceed the retention limit of its 2012 property catastrophe reinsurance program.
- Reporting Threshold: Reportable losses include only individual events exceeding $5 million (pre-tax, net of reinsurance).
Note: This filing does not provide specific values for total revenue, profit, cash flow, margins, debt, or liquidity for the period.
Material Changes and Unusual Items
Superstorm Sandy is the only reportable loss event in the fourth quarter of 2012 to date. The estimated losses represent a material unusual item impacting the fourth quarter results. Actual losses will be finalized and reported in the fourth quarter 2012 earnings release expected on February 6, 2013.
Guidance, Outlook, and Risks
- Forward-Looking Statements: The loss estimates are based on management's best estimates and assumptions and are subject to significant uncertainties. Actual results may differ materially.
- Update Obligation: The Company undertakes no obligation to update these forward-looking statements based on new information.
- Risk Factors: Investors are directed to the 2011 Annual Report on Form 10-K and Third Quarter 2012 Form 10-Q for a detailed discussion of general risk factors.
Investor Verification Checklist
- Verify the final actual loss figures when the Q4 2012 earnings release is issued on February 6, 2013.
- Confirm the impact of the $200-$220 million loss estimate on the full-year 2012 net income and earnings per share.
- Review the 2012 property catastrophe reinsurance program details to understand the retention limits and potential for additional exposure if losses exceed current estimates.
- Assess the geographic concentration risk in New York and New Jersey coastal communities for future underwriting strategies.