Insurance Australia Group (ASX:IAG) has fully integrated RACQ Insurance into its core reinsurance arrangements, including its main catastrophe cover, whole-of-account quota share agreements, and aggregate stop-loss protections.
The WAQS program has also been expanded to cover 35% of IAG's consolidated business.
Following its acquisition of RACQI on Sept. 1, IAG had initially maintained RACQI's standalone reinsurance program, but the quota share and catastrophe protections have now been aligned with IAG’s broader arrangements.
The 2026 catastrophe reinsurance program, which now includes RACQI, provides cover for two events up to $10 billion, with an attachment at $500 million.
RACQI's previous quota shares have been replaced, increasing the total proportion ceded by 2.5%, while multi-year aggregate stop-loss protection—combined with WAQS—offers around $1 billion in annual downside protection for natural perils through FY29.
IAG CFO William McDonnell said the integration "achieves targeted synergies" and noted that improved global reinsurance markets and strong support from partners have reduced earnings volatility.
IAG will release its financial results for the six months to Dec. 31, 2025 on Feb. 12.