Insurance Australia Group Limited
(ASX:IAG) has announced it has extended an agreement with Munich Re that covers 30% of IAG’s compulsory third party business.
The new agreement is for a minimum four-year period, with an additional option to extend for a further two.
Key aspects of the deal include the extension of an existing quote share agreement for business written in NSW and ACT and the inclusion of CTP for business underwritten in SA.
IAG’s quota share with Munich Re operates alongside a 10-year arrangement with Berkshire Hathaway.
IAG reported a net profit of $702 million at 30 June 2016.
