Insurance Australia Group (IAG) (ASX:IAG) has finalised its catastrophe reinsurance program for the 2018 calendar year, setting this year’s cover for losses to up to $8 billion.
The insurer said the reinsurance has been set in a similar way to previous years.
IAG will retain the first $250 million of each loss, with three prepaid reinstatements secured for the lower layer of the main program.
The program covers all territories in which IAG operates, with the exception of its joint venture in India which has its own reinsurance program.
The company said it experienced modest pressure on like-for-like reinsurance rates during the renewal process, with the overall expense outcome in line with the associated assumption in its FY2018 guidance.
Shares in Insurance Australia Group (ASX:IAG) are trading 0.9 per cent lower to $7.20.