IAG extends Munich Re quota share, locks in reinsurance for FY 2023

Australian insurer  IAG has renewed its aggregate reinsurance cover for the financial year ending June 30, 2023, and extended its quota share arrangement with  Munich Re.

The FY23 aggregate cover provides protection of $350 million in excess of $500 million, with individual qualifying events capped at $200 million in excess of $50 million per event.

Third and fourth event financial year occurrence covers have been purchased to provide $100 million of protection for events greater than $150 million.

The structure of  IAG’s main catastrophe reinsurance programme for the 2022 calendar year, which renewed on 1 January 2022, remains unchanged.

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 July 1, 2022 results in  IAG having a maximum event retention of $135 million.

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.

Additionally, the company has extended its  Munich Re quota share arrangement covering 30% of the combined CTP book for a period of three years to June 30, 2025.

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