Yesterday (Thursday, 2 January 2014), IAG announced details of its Group catastrophe reinsurance programme for the calendar year commencing 1 January 2014.
The programme comprises the following key components:
- A main catastrophe cover for losses up to $5.5 billion, including one prepaid reinstatement. The Group retains the first $250 million of each loss, with 2.5 reinstatements secured for the lower layer of the main programme ($250 million excess of $250 million);
- A $100 million upper layer providing earthquake cover in respect of Australia and New Zealand, extending from $5.5 billion to $5.6 billion;
- A buy-down arrangement that reduces the maximum cost of a first event to $175 million and a second event to $150 million; and
- An expanded aggregate sideways cover which reduces the cost of subsequent events to $25 million. The aggregate provides increased protection of $375 million excess of $250 million, with qualifying events capped at a maximum contribution of $225 million excess of $25 million per event.
For full details, click here.