IAG reinsurance drops to $10bn. Non-renews aggregate, drop-down, subsequent event covers

Australian primary insurance group IAG has renewed its main catastrophe reinsurance tower to provide occurrence protection up to $10 billion, which is a reduction on the $10.5 billion tower purchased a year ago. But more notably, with a new volatility cover having been purchased last year the insurer has elected not to renew its aggregate reinsurance and drop-downs.

Last year, IAG renewed a natural perils reinsurance tower for 2024 that attached at $500 million of losses and extended coverage…