FY23 aggregate reinsurance cover and quota share arrangements
IAG has finalised its aggregate reinsurance cover for the financial year ending 30 June 2023. The structure of IAG’s main catastrophe reinsurance program for the 2022 calendar year, which renewed on 1 January 2022, remains unchanged.
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 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 $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.
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.