IAG (ASX:IAG) has finalised its catastrophe reinsurance program for the 2020 calendar year, increasing its gross reinsurance protection to up to $10 billion – last year it was $9 billion.
Australia has experienced a sequence of bushfire events since September 2019 across a number of states, exacerbated by prolonged drought and extreme weather conditions.
These events are ongoing, with a further deterioration in conditions anticipated over the coming weekend.
As at the close of 2 January 2020, IAG had received over 2,800 bushfire-related claims since the beginning of September 2019, with in excess of 1,500 of these lodged since the start of December 2019. The majority of these claims relate to residential properties.
Overall bushfire events are anticipated to contribute over $160 million of net claim costs in 1H20, post-quota share.
Shares in IAG (ASX:IAG) are trading 1.2 per cent higher at $7.67.