Australian insurer IAG has said that it has finalised its aggregate reinsurance cover the financial year ending 30 June 2023.
In a statement, the firm said that its FY23 cover provides protection of $350m in excess of $500m, the latter figure up from $400m from last year. Like last year, individual qualifying events capped at $200m in excess of $50m per event.
In addition, the firm said it had added third and fourth event financial year occurrence covers to give it $100m of protection for events greater than $150m.
The aggregate cover has been placed to the extent of 67.5% to reflect IAG’s cumulative whole-of-account quota share arrangements. After allowing for quota share arrangements, the combination of all catastrophe covers in force at 1 July 2022 results in IAG having a maximum event retention of $135m.
IAG has extended an arrangement for a 2.5% whole-of-account quota share that was due to expire on 30 June 2022 for a further twelve months. IAG also advises that its Munich Re quota share arrangement covering 30% of the combined CTP book has been extended for a period of three years to 30 June 2025.
This follows the firm’s $10bn catastrophe reinsurance renewal in January, when it secured flat gross protection cover at up to $10bn at a higher cost than in 2021. The main cover of the $10bn 2022 calendar year catastrophe reinsurance programme includes one prepaid reinstatement, with IAG retaining the first $250m of each loss, which is line with the 2021 programme.