The New Zealand Earthquake Commission (EQC) has declined to confirm a UK insurance media report that it will avoid a rate increase when it renews its reinsurance treaty this year.

An EQC spokesman told insuranceNEWS.com.au he could not comment because “the placement is still being finalised”.

Last year’s reinsurance cost the EQC $NZ120 million ($100.54 million) as it took a higher deductible and increased its amount of cover to $NZ5 billion ($4.19 billion).

This was 50% up on 2011 when it paid $NZ80 million ($67.03 million), which was in turn double the $NZ40 million ($33.51 million) paid in 2010.

Despite the reported lack of a rate increase this year, it is believed the EQC will still pay more – almost $NZ150 million ($125.67 million) – as the final 25% of its three-year protections comes up for renewal at post-quake rates.

The total estimated cost of the rebuild following the devastating Canterbury quakes of September 2010 and February 2011 is $NZ40 billion ($33.51 billion) and to date the EQC has paid $NZ5.3 billion ($4.44 billion) in claims.