Australian insurer IAG has successfully implemented its 2026 catastrophe reinsurance program, adding RACQ Insurance (RACQI) to its primary catastrophe insurance, all-account quota share (WAQS) arrangement and total stop-loss protection.
Readers may recall that following the successful acquisition of RACQI on September 1, 2025, IAG upgraded its fiscal year 2026 guidance.
IAG’s catastrophe reinsurance program, combined with its WAQS arrangement, provides primary catastrophe coverage for up to $10 billion in two events through 2026, with additional amounts of $500 million.
This structure is broadly consistent with IAG’s 2025 catastrophe plan, which is slightly reduced from 2024.
RACQI’s independent quota share arrangement has now been replaced by IAG’s WAQS scheme, increasing IAG’s overall share of the consolidated business by 2.5% to 35%.
Additionally, RACQI has been included in the multi-year aggregate stop-loss protection initially announced on June 28, 2024. IAG said that combined with the WAQS arrangement, this will provide approximately $1 billion in annual downside protection against natural disasters by fiscal 2029.
William McDonnell, Chief Financial Officer of IAG, commented: “We are pleased to integrate the RACQI business into the overall reinsurance program, which will deliver targeted synergies.
“Global reinsurance markets improved in 2025, allowing us to renew reinsurance protection in a favorable manner relative to expectations.
“In addition, IAG has strong support from its reinsurance partners in expanding its overall program, further reducing the volatility of our earnings.”