Insurance Australia Group
(ASX:IAG) has strengthened its reinsurance cover with the purchase of additional catastrophe protection.
The multinational insurance company purchased an additional $1 billion of gross protection, which will kicked in on 1 June 2017 and will expire on 31 December 2018.
IAG’s $7 billion exiting catastrophe cover, operates on a calendar year basis. It is subject for renewal on 1 January 2018.
The company says the purchase of the additional cover strengthens its reinsurance protection in a cost effective way, while it also significantly extends the upper end of its gross protection.
Shares in Insurance Australia Group
(ASX:IAG) has last traded 0.32 per cent lower to $6.23.
