IAG adds RACQ Insurance into reinsurance program after $855m acquisition
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The news: IAG has integrated recently acquired RACQ Insurance into its main catastrophe reinsurance program, whole-of-account quota share (WAQS) arrangements and aggregate stop-loss protection.
The numbers: The catastrophe reinsurance program for 2026 covers two events up to $10 billion with an attachment at $500 million.
RACQI’s quota shares have been replaced by IAG’s WAQS arrangement, which has increased the total proportion ceded by 2.5% to 35% of the IAG consolidated business.
The WAQS arrangement in combination with the multi-year stop-loss protection, which RACQI has now been integrated into, provides about $1 billion in downside protection annually for natural perils through FY29.
The context: When IAG announced it had completed the $855 million acquisition of RACQI on 1 September 2025 its separate standalone reinsurance program consisting of quota share and catastrophe protections was maintained.
What they said: “We are pleased to have integrated the RACQI business into the overall reinsurance program which will achieve the targeted synergies,” IAG chief financial officer William McDonnell said.
“Global reinsurance markets have improved during 2025, allowing us to renew reinsurance protection favourably relative to expectations. In addition, IAG received strong support from reinsurance partners in expanding the overall program, resulting in a further reduction in the volatility of our earnings.”
The source: ASX
