Insurer IAG (ASX:IAG) has maintained its $10 billion catastrophe reinsurance protection cover, the same level as 2021.
The insurer retains the first $250 million of each loss, while second and third event drop-down covers of $50 million reducing the cost of the events to $200 million.
Around 60 per cent of the gross main catastrophe program for calendar 2022 is protected by multi-year coverage, providing certainty of future reinsurance cover.
The overall credit quality of the 2022 program is strong, with over 90 per cent placed with entities rated A+ or higher, an increase compared to 2021.
The insurer retains the first $250 million of each loss, while second and third event drop-down covers of $50 million reduce the cost of the events to $200 million, IAG said.
“Our catastrophe reinsurance program remains an intrinsic part of IAG’s capital management strategy. The structure of the new program is similar to that of prior years, and we received strong support from our reinsurance partners with whom we have long-term relationships,” said IAG’s chief financial officer Michelle McPherson.
Shares in IAG (ASX:IAG) are trading 0.3 per cent higher at $4.40.