Highlights

  • IAG has integrated RACQ Insurance into its catastrophe, quota share, and aggregate stop-loss reinsurance programs.
  • The 2026 catastrophe program provides cover of up to AUD 10 billion across two events, with a AUD 500 million attachment point.
  • The WAQS coverage has expanded to 35% of IAG’s consolidated business, with approximately AUD 1 billion in annual downside protection through FY29.

 

Insurance Australia Group Limited (ASX:IAG) has confirmed the integration of RACQ Insurance (RACQI) into its group-wide reinsurance arrangements. The integration follows IAG’s acquisition of RACQI on 1 September 2025 and incorporates the business into catastrophe cover, whole-of-account quota share arrangements, and aggregate stop-loss protection ahead of the 2026 calendar year.

RACQ Insurance Added to Group Reinsurance Framework

IAG announced that RACQ Insurance has now been incorporated into its main catastrophe reinsurance program, whole-of-account quota share (WAQS) arrangements, and aggregate stop-loss protection. Prior to integration, RACQI operated under a standalone reinsurance structure that included separate quota share and catastrophe protections.

The updated arrangements align RACQI with IAG’s consolidated reinsurance framework, allowing the acquired business to be covered under the group’s existing risk transfer structures.

2026 Catastrophe Reinsurance Program Confirmed

The catastrophe reinsurance program for the 2026 calendar year has been successfully placed and now extends coverage to RACQI. Combined with the WAQS arrangements, the program provides main catastrophe cover for up to AUD 10 billion across two events, with an attachment point of AUD 500 million.

In parallel, RACQI’s previous quota share arrangements have been replaced by IAG’s WAQS structure. As a result, the proportion of business ceded under the WAQS arrangements has increased by 2.5%, bringing total coverage to 35% of IAG’s consolidated business.

Aggregate Stop-Loss Protection Extended

RACQI has also been integrated into IAG’s multi-year aggregate stop-loss protection, which was originally announced on 28 June 2024. When combined with the WAQS arrangements, the structure provides approximately AUD 1 billion in annual downside protection against natural peril events through to FY29.

IAG stated that the integration aligns with previously identified objectives associated with the RACQI acquisition and reflects improved conditions in global reinsurance markets during 2025. The expanded program was supported by reinsurance partners, enabling adjustments to overall coverage parameters.

Upcoming Financial Results and Market Update

IAG is scheduled to release its financial results for the six months ended 31 December 2025 on 12 February 2026.

IAG shares were trading at AUD 7.80, down AUD 0.05, representing a 0.64% decline during the trading session.

About IAG

Insurance Australia Group Limited is the parent company of a general insurance group operating in Australia and New Zealand. The group underwrites more than AUD 17 billion in insurance premiums annually across brands including NRMA Insurance, RACV, RACQI, CGU, WFI, NZI, State, AMI, and Lumley.