InvestSMART

Insurance Australia Group Limited (ASX:IAG)

ALERT: Price-sensitive ASX Announcement for IAG
Current share price for IAG : $8.165 0.315 (4.01%)+
Announcement
Release
6 Jan 2026 8:40AM
Price at Release
$7.850
Full Release
download
Summary
Insurance Australia Group Limited (IAG) has successfully integrated RACQ Insurance into its main catastrophe reinsurance program, including the whole of account quota share (WAQS) arrangements and aggregate stop-loss protection. The WAQS now covers 35% of the consolidated business following the acquisition of RACQ Insurance on 1 September 2025. The 2026 catastrophe reinsurance program offers coverage for two events up to $10 billion, enhancing protection for the RACQI business. Additionally, RACQI's quota shares have been replaced by IAG's WAQS, increasing the total ceded proportion by 2.5%. This integration also involves a multi-year aggregate stop-loss protection that offers approximately $1 billion in annual downside protection for natural perils until FY29. The favorable global reinsurance market conditions in 2025 have enabled IAG to renew its reinsurance protection advantageously, with strong support from reinsurance partners, further reducing earnings volatility.
Key Points
  • IAG has integrated RACQ Insurance into its main catastrophe cover and reinsurance arrangements.
  • The WAQS arrangements now cover 35% of IAG's consolidated business.
  • RACQI's separate reinsurance program was initially maintained post-acquisition.
  • The 2026 catastrophe reinsurance program provides coverage for events up to $10 billion.
  • RACQI’s quota shares are replaced by IAG’s WAQS arrangements, increasing the ceded proportion.
  • The integration includes aggregate stop-loss protection providing around $1 billion for natural perils until FY29.
  • Global reinsurance markets have improved in 2025, allowing favorable renewals.
  • IAG's Continuous Disclosure Committee authorized the release.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.