News: IAG Insurance Australia Group Reduces Earnings Volatility With Long-Term Reinsurance...

June 28 (Reuters) - Insurance Australia Group Ltd (IAG) :

• IAG REDUCES EARNINGS VOLATILITY WITH LONG-TERM REINSURANCE AGREEMENTS
• FY24 REPORTED INSURANCE PROFIT AND MARGIN ON TRACK TO BE AROUND UPPER END OF GUIDANCE RANGES
• REDUCED VOLATILITY DELIVERS AN EXPECTED CAPITAL BENEFIT OF AROUND A$350M
• TWO STRATEGIC AGREEMENTS WITH GLOBAL REINSURERS IMPROVE FUTURE FINANCIAL STABILITY
• LONG-TERM NATURAL PERILS VOLATILITY PROTECTION WITH BERKSHIRE HATHAWAY AND CANADA LIFE REINSURANCE
• EXPECTED FY25 NET NATURAL PERILS COSTS ARE CAPPED AT A$1,283M IN OVER 90% OF MODELLED SCENARIOS
• FY24 GROSS WRITTEN PREMIUM GROWTH EXPECTED TO BE CONSISTENT WITH ‘LOW-DOUBLE DIGIT’ GUIDANCE
• FY24 UNDERLYING INSURANCE MARGIN EXPECTED TO BE AROUND MID-POINT OF 13.5% TO 15.5% RANGE
• ENTERED COMPREHENSIVE FIVE-YEAR NATURAL PERILS REINSURANCE AGREEMENT STARTING FROM JULY 2024 WITH NATIONAL INDEMNITY
• AGREEMENT WITH NATIONAL INDEMNITY PROVIDING UP TO A$680M OF ADDITIONAL PROTECTION ANNUALLY

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