IAG integrates RACQ Insurance into reinsurance programs
Key points
- IAG has successfully integrated RACQ Insurance (RACQI) into its main catastrophe cover, whole of account quota share (WAQS) arrangements and aggregate stop-loss protection
- The 2026 catastrophe reinsurance program now protects the RACQI business
- RACQI's quota shares have been replaced by IAG's WAQS arrangements, increasing the total proportion ceded to 35% of IAG's consolidated business
Full summary
IAG has successfully integrated RACQ Insurance (RACQI) into its main catastrophe cover, whole of account quota share (WAQS) arrangements and aggregate stop-loss protection. Additionally, IAG has expanded the WAQS arrangements to now cover 35% of the consolidated business. The catastrophe reinsurance program for the 2026 calendar year has been successfully placed, which now also protects the RACQI business. In conjunction with IAG's WAQS arrangements, the 2026 catastrophe reinsurance program provides a main catastrophe cover for two events up to $10 billion, with an attachment at $500 million. RACQI's quota shares have now been replaced by IAG's WAQS arrangements, and the total proportion ceded has increased by 2.5%, representing 35% of IAG's consolidated business. RACQI's business has also been integrated into the multi-year aggregate stop-loss protection originally announced on 28 June 2024, which in combination with the WAQS arrangements provides around $1 billion in downside protection annually for natural perils through to FY29.
Guidance
IAG will announce its financial results for the six months to 31 December 2025 on 12 February 2026.
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