Insurance Australia Group (AS:IAG) has finalised its aggregate reinsurance cover for the 2023 financial year, while the structure of IAG’s main catastrophe reinsurance program for 2022 remains unchanged.
IAG noted that the FY23 aggregate cover provides protection of $350 million for losses exceeding $500 million, with individual qualifying events capped at $200 million for losses exceeding $50 million per event.
IAG has also added a third and fourth event cover worth $100 million in protection for disasters exceeding $150 million in losses. Its maximum event retention stands at $135 million as of July 1.
Meanwhile, the company has extended an arrangement for a 2.5 per cent whole-of-account quota share that was due to expire at the end of June, for a further twelve months.
IAG has also extended its Munich Re quota sharing arrangement spanning 30 per cent of its compulsory third party book for a further three years.
Shares are trading 0.5 per cent lower at $4.25.