IAG renews Berkshire Hathaway quota share, but relationship … – Reinsurance News

CCR Re

Reinsurance News
12th January 2023 – Author: Matt Sheehan
Australian insurer IAG has announced the renewal of its largest Whole of Account Quota Share (WAQS) agreement, with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway, but there have also been key changes to the terms of the relationship between the companies.
iagFor instance, Warren Buffett’s company will be free to sell down a $465 million stake in IAG, and to offer reinsurance to competitors in the Australian industry due to the non-renewal of an exclusivity agreement, the Australian Financial Review reports.
These changes come amid speculation that the relationship between Berkshire and IAG has become strained, with the former possibly irked that its investment in IAG is now worth less than the original price it paid.
Berkshire initially purchased a $500 million stake in IAG at $5.57 per share, and later bought in further at a price of $5.05 per share, but are now only trading at $4.80 at the time of writing.
Nevertheless, both parties agreed terms to renew their reinsurance arrangement, with the treaty representing 20% of AIG’s total 32.5% WAQS program, and running through until 2029.
Artemis ILS NYC 2023 conference
IAG has now renewed 30% of the 32.5% WAQS, with Munich Re, Swiss Re, and Berkshire Hathaway, all effective from 1 January 2023, with negotiations on the remaining 2.5% expected to be completed in the coming months.
“Berkshire Hathaway is a key partner of IAG and we are pleased to extend our strong relationship through to the end of the decade,” said IAG Chief Financial Officer Michelle McPherson. “The Berkshire Hathaway agreement delivers IAG a materially consistent financial outcome to the original agreement and supports our 15% to 17% medium-term reported margin target.”
McPherson added: “The terms of the renewed agreement with Berkshire Hathaway’s NICO reflect the maturing of our partnership, and the removal of supporting Subscription and Strategic Relationship Agreements provides consistency with our other quota share partner arrangements.”
IAG has provided a detailed break-down of its catastrophe reinsurance renewal for 2023, which saw it maintain a flat gross protection cover at up to $10 billion, same as in 2022, with a first event retention that was increased to reflect “inflation and the global reinsurance market impacts”.
Advertise with Reinsurance News
Corinthian Re
Advertise on Reinsurance News
We have 220,000+ monthly reinsurance news readers & 18,000+ daily email subscribers. Reach the largest reinsurance audience.
Computershare Corporate Trust
Labuan International Business and Financial Centre

PCS - Original Risk Society

Advertise with Reinsurance News
Advertise with Reinsurance News
We also publish Artemis.bm, the leading publisher of news, data and insight for the catastrophe bond, insurance-linked securities, reinsurance convergence, longevity risk transfer and weather risk management sectors.. We’ve published and operated Artemis since its launch 20 years ago and have a readership of around 60,000 every month.
Get in touch directly using our contact form. Or find and follow Reinsurance News on social media.
Get reinsurance news by email here.
All content copyright © Steve Evans Ltd. 2021 All rights reserved. Steve Evans Ltd. registered in England No. 07337195 Website Privacy & Cookies and Disclaimer

source

Related Posts

Anne Hathaway Says She and James Franco "Sucked" at Hosting Oscars – E! NEWS

Anne Hathaway isn't mincing words about her Oscars hosting gig with James Franco. The actress, 39, revealed what she really thinks of their 2011 performance as emcees during the Oct….

Anne Hathaway, Jeremy Strong, Anthony Hopkins form a Jewish film … – The Jerusalem Post

Anne Hathaway, Jeremy Strong, Anthony Hopkins form a Jewish film …  The Jerusalem Postsource

Berkshire Hathaway: Warren Buffett further unwinds BYD investment … – CNN

Berkshire Hathaway: Warren Buffett further unwinds BYD investment …  CNNsource

Berkshire Hathaway Inc. Cl B stock underperforms Tuesday when compared to competitors – MarketWatch

Shares of Berkshire Hathaway Inc. Cl B BRK.B slipped 0.31% to $305.55 Tuesday, on what proved to be an all-around mixed trading session for the stock market,…

Donald S. Hathaway Jr. – Ocala News

Donald S. Hathaway Jr. passed away on his 61st birthday, Tuesday November 15, 2022.Don grew up in New Vernon, NJ and attended Bayley Ellard high school. After…

Anne Hathaway tells 'The View' that 'abortion can be another word … – Fox News

This material may not be published, broadcast, rewritten, or redistributed. ©2023 FOX News Network, LLC. All rights reserved. Quotes displayed in real-time or delayed by at least…

Leave a Reply

Your email address will not be published. Required fields are marked *