IAG has placed its major catastrophe reinsurance program for the calendar year, with cover obtained for two events up to $10 billion.  

It says the cover, in conjunction with whole of account quota share arrangements, has an attachment point at $500 million.

“IAG received strong support from reinsurance partners in placing the annual catastrophe program,” CFO William McDonnell said.  

The main annual cover is supplemented by a five-year program announced last June, which simplified previous arrangements for events such as smaller but more frequent weather disasters.

The long-term natural perils volatility protection, in combination with quota share arrangements, provides about $1 billion in additional protection annually and up to $4 billion over the five years for event costs below $500 million. 

IAG’s perils allowance for this fiscal year has increased to $1.283 billion from $1.098 billion the previous year.

“Reinsurance is a key component of our low-volatility strategy, providing downside protection against natural perils costs exceeding our FY25 allowance,” Mr McDonnell said.

IAG will announce its first-half financial results on February 13.