IAG reiterates reinsurance coverage as Hunter Flood claims top 2,500
By Ryan Hewlett
May 27 - (The Insurer) - IAG has received around 2,500 claims from policyholders because of the devastating New South Wales Mid North Coast and Hunter Floods, and has issued reassurance that it has a comprehensive reinsurance program in place to insulate losses.
ASX-listed IAG disclosed in a filing on Tuesday that the claims predominantly relate to property damage due to heavy rainfall, strong winds and floodwaters.
IAG noted that it is too early to estimate the cost of the current event.
The insurer said it benefits from quota share reinsurance that covers 32.5% of all losses and catastrophe cover that provides cover for 67.5% of all losses above A$500 million up to A$10 billion.
IAG also has perils volatility cover of A$680 million, which it said provides strong downside protection against retained natural perils costs exceeding its full-year 2025 allowance of A$1.283 billion.
It comes after the company stated earlier in May that net natural perils costs to the end of April 2025 were estimated to be approximately A$900 million, around $250 million lower than the year-to-date expectation.
Also on Tuesday, trade body Insurance Council of Australia (ICA) upgraded its classification of the event to an ‘insurance catastrophe’ as total industry claims surged to almost 5,000.
Related Articles
Alibaba – the Poster child of the Chinese AI Revolution
TradingKey - In the beginning of the year, Alibaba ADR at the New York Stock Exchange was traded at $84.95. AS of September 25th, the price is already $176.44, or more than double – a remarkable rally that doubled the price within less than ten months.
Carnival’s Q3 2025 Earnings Preview: Can Strong Demand and Celebration Key Drive Valuation Higher?
TradingKey - Fueled by robust consumer demand for cruise travel, Carnival has hit all-time highs in several key metrics, including revenue, yield, and customer deposits. Its stock has performed strongly in 2025, with a year-to-date gain exceeding 20% and a nearly 70% increase over the past 12 months
U.S. August PCE Preview: Four-Run PCE Bounce Challenges the Fed’s Three-Cut Plan
TradingKey - The U.S. Bureau of Economic Analysis (BEA) will release the August Personal Consumption Expenditures (PCE) Price Index on Friday, September 26, with markets closely watching how much tariff pass-through effects have influenced inflation.
U.S. August PCE: Inflation Remains the Market's Greatest Risk
Our baseline forecast anticipates sustained asset price increases. However, if inflation surpasses market expectations in the coming months, it could hinder further rate cuts and pose the greatest risk to financial markets.
Memory Giant Micron Delivers Stellar Q4 FY2025 with Explosive DRAM and HBM Growth
TradingKey - Micron Technology, Inc. (NASDAQ: MU) delivered a stellar Q4 FY2025 earnings report, exceeding expectations on revenue, earnings, and margins. The company reported total revenue of $11.32 billion, up 46% YoY and 22% sequentially, surpassing the consensus forecast of $11.1 billion.
