Australia: Major insurer places $7bn catastrophe reinsurance programme
Source: Asia Insurance Review | Feb 2024
IAG has placed its catastrophe reinsurance programme for the 2024 calendar year.
The insurer said in a statement that in conjunction with its whole of account quota share (WAQS) arrangements which apply to 32.5% of natural perils, the 2024 catastrophe reinsurance programme provides:
- A main catastrophe cover for two events up to A$10.5bn ($7.05bn), with an attachment at A$500m;
- A further drop-down cover of A$150m reducing IAG’s retention on the first two events to A$236m (67.5% of A$350m), with an additional premium payable if the drop-down cover is utilised on a first event;
- An additional drop-down cover for a New Zealand-specific second event of A$100m excess of A$250m; and
- Third and fourth event covers of A$250m excess of A$250m.
In addition, for the remainder of FY24, as announced in July 2023, IAG’s reinsurance cover also includes additional pre-quota share third and fourth event protection of A$150m for events greater than A$200m, and aggregate cover of A$250m excess of A$600m with qualifying events capped at A$200m excess of A$50m per event. A