IAG boosts catastrophe cover

Insurance Australia Group has purchased additional reinsurance cover worth $1 billion on top of its existing $7 billion protection.

Insurance Australia Group has boosted its protection against major disasters by purchasing additional reinsurance cover worth $1 billion.

The insurer behind brands such as NRMA and CGU already holds gross protection worth $7 billion, which is due for renewal on January 1.

IAG cut its full-year margin guidance in April after an estimated $140 million in claims from Tropical Cyclone Debbie and heavy claims from a northern Sydney hailstorm in late February.