IAG has finalised its aggregate reinsurance cover for the financial year after in January renewing its main catastrophe program, which is on a calendar year basis.

“Aggregate cover provides protection of $350 million in excess of $500 million, with individual qualifying events capped at $200 million in excess of $50 million per event,” the insurer said last week.

Third and fourth event covers have been purchased to provide $100 million of protection for events greater than $150 million.

The aggregate cover, which provides additional protection for small to medium events, has been placed to the extent of 67.5% to reflect IAG quota share arrangements.

After allowing for the arrangements, the combination of all catastrophe covers in force at July 1 results in IAG having a maximum event retention of $135 million.

IAG also says a 2.5% whole-of-account quota share arrangement due to expire at the end of last month has been extended for 12 months, and a Munich Re quota share arrangement covering 30% of the combined compulsory third party book has been extended for three years to June 30 2025.

The company will provide further details on its reinsurance arrangements when it announces its financial results on August 12.