New Zealand’s Earthquake Commission (EQC) is increasing its reinsurance cover to $NZ5 billion ($3.9 billion), according to UK reports.

The EQC has refused to comment on its negotiations, which started around March, but is reportedly looking to restructure its program at the June renewal and has put order terms into the market.

The EQC paid $NZ48 million ($37 million) for reinsurance in the year to June 30 2011, when its premiums rose $NZ10 million ($7.7 million) over budget. But the commission expects to recover over $NZ4 billion ($3.08 billion) in reinsurance from that cover.

Following Christchurch earthquake losses, the commission could renew only one of its rolling three-year contracts for a year.

Reports say the EQC is considering buying an extra $NZ750 million ($579 million) of cover to take its limit to $NZ5 billion, and that this could cost about 50% more, on top of a 130% increase last year.