Australian insurer IAG has announced the completion of its aggregate reinsurance cover for the fiscal year ending June 30th, 2022, which provides it with $350 million of protection in excess of $400 million.
IAG switched its aggregate cover from a calendar to financial year basis in 2020, enhancing its use of reinsurance after elevated losses from natural catastrophe events in the region.
The company procured this new aggregate layer in June of last year, with the initial cover overlaying its existing aggregate protection for the balance of calendar year 2020, with the calendar year aggregate cover not being renewed from January 1st, 2021.
IAG has now finalised the renewal of its FY22 aggregate cover, which as in the previous year, provides it with $350 million of protection in excess of $400 million, with individual qualifying events capped at $200 million in excess of $50 million per event.
For the FY22 renewal, IAG says that the cover has been placed to the extent of 67.5% to reflect its cumulative whole-of-account quota share arrangements.
After allowing for quota share arrangements, the combination of all of the catastrophe covers at July 1st, 2021 results in IAG having a maximum event retention of $169 million.
The structure of the company’s main catastrophe reinsurance program for the 2021 calendar year, which renewed on January 1st, 2021, remains unchanged, says the firm.