Australian insurer IAG has successfully placed its 2026 catastrophe reinsurance program, integrating RACQ Insurance (RACQI) into its main catastrophe cover, whole-of-account quota share (WAQS) arrangements and aggregate stop-loss protection.
For 2026, IAG’s catastrophe reinsurance program, structured in conjunction with its WAQS arrangements, provides main catastrophe cover for two events of up to $10 billion, attaching at $500 million.
RACQI’s standalone quota share arrangements have now been replaced by IAG’s WAQS program, lifting the total proportion ceded by 2.5% to 35% of IAG’s consolidated business.
In addition, RACQI has been incorporated into the multi-year aggregate stop-loss protection originally announced on 28 June 2024. Combined with the WAQS arrangements, this provides around $1 billion of annual downside protection against natural perils through to FY 2029, IAG said.
IAG Chief Financial Officer William McDonnell commented, “We are pleased to have integrated the RACQI business into the overall reinsurance program, which will achieve the targeted synergies.
“Global reinsurance markets have improved during 2025, allowing us to renew reinsurance protection favourably relative to expectations.
“In addition, IAG received strong support from reinsurance partners in expanding the overall program, resulting in a further reduction in the volatility of our earnings.”
