Australian primary player Insurance Australia Group ((IAG)) (IAUGF) (IAUGY) has spent significantly more on its reinsurance protection in the last six months and added stop-loss protection to cover it when catastrophe losses go above its natural perils budget and servicing a larger overall program.
At the January reinsurance renewal earlier this year, IAG secured its $8 billion catastrophe tower citing "modest upwards pressure on like-for-like reinsurance rates."
The company had already set up last December a new five-year 12.5% quota share arrangement with reinsurance giants Munich Re, Swiss Re (SSREY) and Hannover Re (HVRRY), which