Insurance Australia Group
(ASX:IAG) has decided to keep its protection against major disasters this year unchanged at $7 billion.
IAG says its reinsurance against catastrophes reflects a stable overall aggregate exposure. In particular, growth in insurance coverage for short-term personal lines (or claims which usually known and settled within 12 months) have been offset by
reduced commercial portfolios in Australia and New Zealand.
The insurer also says the overall credit quality of the 2017 catastrophe reinsurance program is strong, with 92% placed with entities rated A+ or better.
In addition, IAG says it has $96 million in separate natural perils cover in excess of $680 million, which runs in line with the financial year ending 30 June 2017.
IAG posted a net profit of $702 million at 30 June 2016.
