Insurance Australia Group (IAG) has confirmed its catastrophe reinsurance program for 2023 and renewed two of its Whole of Account Quota Share (WAQS) agreements.
The 2023 program provides a main catastrophe cover for two events up to $10 billion, with a retention of $338 million (67.5% of $500 million).
In addition, drop-down covers of $150 million for two events and $100 million for third and fourth events reduce IAG’s retention to $236 million and $101 million, respectively.
The total non-quota share reinsurance expense for FY23 is expected to be in the range of $790 million to $820 million.
The renewal with WAQS partners, Munich Re and Swiss Re, represents 10% of the 12.5% whole of account program, and the agreements will be effective from 1 January 2023.
Following the announcement, shares of Insurance Australia Group (ASX:IAG) were unchanged at $4.76.