Insurance Australia Group (IAG) has finalised its catastrophe reinsurance programme which will provide up to $7 billion of protection.
IAG said that the higher level of cover than 2014 reflects the increased size of IAG following the acquisition of the former Wesfarmers business, whose previous standalone cover has been cancelled.
The programme includes a catastrophe cover for losses up to $6.75 billion, including one prepaid reinstatement. IAG retains the first $250 million of each loss, with three reinstatements secured for the lower layer of the main programme.