IAG trims more XoL covers at mid-year renewal, rounds out quota share
Australian insurance group IAG trimmed its reinsurance programme around the edges, accepting cuts to full-year aggregate and late-event elements of the XoL tower that stretches above and beyond the IAG 32.5% quota share deals.
A FY24 aggregate cover provides protection of $250 million in excess of $600 million, with individual qualifying events capped at $200 million in excess of $50 million per event. A tower published after 1/1 had shown $350 million excess of $500 million with qualifying events capped at $200 million excess of $50 million per event.
Third and fourth event occurrence programmes take $150 million for events greater than $200 million, scaled down proportionately for IAG's traditional 32.5% quota share. The prior tower had $250 million over $250 million plus a $100 million drop-down.
As part of the 32.5% quota share, IAG renewed a 2.5% slice with Hannover Re for a period of five years.
After allowing for the quota share arrangements, IAG has a maximum event retention of $169 million for a first and second event, covered by a $10 billion cat treaty signed at 1/1, also with heightened retentions.
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