Insurance Australia Group Limited (ASX: IAG) has finalised its catastrophe reinsurance program for CY20. The company has increased its gross reinsurance protection to up to $10 billion (CY19: $9 Billion).
Key features of IAG’s catastrophe reinsurance program:
- A main catastrophe cover for losses up to $10 billion, including one prepaid reinstatement;
- The company will be retaining the first $250 million of each loss;
- A second event drop-down cover reducing the cost of such an event to $200 million;
- An aggregate sideways cover which provides protection of $425 million excess of $450 million.
At AEDT 12:52PM, the stock was trading at $7.705 per share, up by 1.649% from its previous close.