Insurance Australia Group's (IAG) aggregate cover for the financial year ending June 30, 2023 (FY23) will provide protection of $350 million in excess of $500 million.
In a press release, IAG explained that individual qualifying events are capped at $200 million in excess of $50 million per event. Additionally, it has purchased the third and fourth event financial year occurrence covers to provide $100 million protection for events greater than $150 million.
The aggregate cover has been placed to a maximum of 67.5% to reflect IAG's cumulative whole-of-account quota share arrangements. After allowing these arrangements, the total catastrophe cover gained a maximum event retention of $135 million, effective July 1, 2022.
IAG has also extended its Munich Re quota share arrangement covering 30% of the combined CTP book to three years, specifically June 30, 2025.
The release of IAG's finalised aggregate reinsurance cover for FY23 follows the release of its Stretch Reconciliation Action Plan (RAP) to address Indigenous incarceration and climate change by implementing several initiatives.