Insurance Australia Group Ltd (ASX:IAG) says it is too early to determine the extent of damage, following the earthquake that struck Christchurch over the weekend, although it expects to be covered by its reinsurance arrangements.

IAG operates the NZI and State brands in New Zealand.

Subject to the damage caused by the earthquake, the loss from a subsequent major event this calendar year would be capped at a maximum of $175 million.

Managing Director and CEO Michael Wilkins says IAG has already responded to more than 2,000 calls. IAG advises that it's fiscal 2011 guidance remains unchanged.

IAG reported a net profit of $91 million in fiscal 2010, halving its full year result from a profit of $181 million in fiscal 2009.