IAG purchases additional catastrophe reinsurance cover
IAG has strengthened its reinsurance cover through the purchase of additional catastrophe protection.
Details of the additional cover are:
- $1 billion of gross protection in excess of $7 billion, including one prepaid reinstatement;
- Placement to the extent of 80% to reflect existing quota share arrangements; and
- A contractual period of 19 months, commencing 1 June 2017 and concluding on 31 December 2018.
IAG’s existing main catastrophe tower, up to $7 billion gross, operates on a calendar year basis and will be subject to renewal on 1 January 2018.
IAG Chief Financial Officer Nick Hawkins said: “We are always looking for ways to strengthen our reinsurance protection in a cost effective manner, and this purchase meets those requirements. It significantly extends the upper end of our gross protection.”