Insurance Australia Group Limited (ASX:IAG) has pumped up its multi-billion dollar reinsurance protection by an additional $600 million this year.
The insurance giant has increased its reinsurance protection to $5.6 billion in 2014 from $5 billion in 2013.
Chief Financial Officer Nick Hawkins says IAG has taken the opportunity of more favourable reinsurance market conditions to bolster key aspects of its catastrophe protection.
Under the terms of the latest agreement the company will be covered for losses from disasters up to $5.5 billion. IAG will also be provided with a $100 million upper layer earthquake cover for Australia and New Zealand.
IAG reported a net profit of $882 million in the 2013 financial year.
