Half year result guesses, page-39

I think what they are trying to do by reducing reinsurance coverage, is create an easy way to effectively raise capital if they need it. I think they are trying to set themselves up in case of a big upturn in policies written eg. When interest rates fall.

so rather than be depleted of capital and have to retain profits or raise capital they could simply raise the reinsurance coverage to give them more regulatory capital headroom.

the disadvantage is that the reinsurance was effectively cheap capital. So maybe they are managing RoE outcomes as well by adjusting reinsurance coverage.