New Zealand’s Earthquake Commission (EQC) has bought reinsurance cover worth $NZ4.5 billion ($4.17 billion), increasing its protection due to lower global reinsurance prices.

The cover is up from $NZ3.25 billion ($3.01 billion) last year, the state-owned insurer’s CEO Ian Simpson said last week.

He says the cost of cover has fallen about 10% since last June’s renewal, enabling the EQC to increase its cover with the saving. The annual cost will be about $150 million.

Mr Simpson says reinsurance markets are getting softer, with more capital flowing in, but the EQC has not used catastrophe bonds.