IAG has finalised an $8 billion catastrophe reinsurance program for this year, after entering into new quota share agreements to reduce its risk and spread exposure.

The insurer has placed 67.5% of the reinsurance, or $5.23 billion, down from an 80% share last year due to agreements with Munich Re, Swiss Re and Hannover Re for a combined 12.5%. The agreements add to a 20% arrangement with Berkshire Hathaway.

IAG has reported “modest upwards pressure” on renewal rates, but says the overall expense is in line with earnings guidance assumptions.

The company has retentions of $169 million for a first event, $84 million for a second event and $17 million for those that follow, after main and aggregate covers and quota share deals are taken into account.

By region, first-event retentions are $169 million for Australia, $NZ169 million ($155 million) for New Zealand, $20 million for Malaysia, $17 million for Thailand and about $1 million for Vietnam and Indonesia. The company’s India joint venture has its own reinsurance arrangements.

IAG increased its gross catastrophe protection by $1 billion in the middle of last year, after starting the year with cover for losses up to $7 billion.