IAG Enhances Reinsurance Strategy with RACQI Integration

The 2026 reinsurance program, structured alongside IAG's whole-of-account quota share (WAQS) arrangements, now provides main catastrophe cover for two events up to $10 billion, with an attachment point at $500 million. This structure remains broadly consistent with IAG's 2025 program, ensuring continuity and stability in coverage.

Notably, RACQI's standalone quota share arrangements have been replaced by IAG's WAQS program, increasing the total proportion ceded by 2.5% to 35% of IAG's consolidated business. Additionally, RACQI has been incorporated into the multi-year aggregate stop-loss protection, offering approximately $1 billion of annual downside protection against natural perils through to the 2029 financial year.

William McDonnell, IAG's Chief Financial Officer, expressed satisfaction with the integration, stating that it achieves the targeted synergies and benefits from improved global reinsurance market conditions. He highlighted the strong support from reinsurance partners, which has allowed for the expansion of the overall program and a further reduction in earnings volatility.

For small to medium business owners, this development underscores the importance of partnering with insurers that proactively manage and enhance their reinsurance strategies. Such initiatives contribute to the insurer's financial stability and capacity to provide comprehensive coverage, ultimately benefiting policyholders by ensuring reliable protection against catastrophic events.