Insurance Australia (ASX:IAG) renews Berkshire Hathaway quota share agreement

• Insurance Australia (IAG) renews its largest whole of account quota share (WAQS) agreement with Berkshire Hathaway’s National Indemnity Company (NICO)
• The renewed agreement represents 20 per cent of the total 32.5 per cent WAQS program and will be in place to December 31, 2029
• IAG has now renewed 30 per cent of the 32.5 per cent WAQS, with negotiations on the remaining 2.5 per cent expected to be completed in the coming months
• Shares in IAG ended the day up 0.84 per cent at $4.80 each

Insurance Australia (IAG) has renewed its largest whole of account quota share (WAQS)
agreement with Berkshire Hathaway’s National Indemnity Company (NICO).

The renewed agreement represents 20 per cent of the total 32.5 per cent WAQS program and will be in place through to December 31, 2029.

IAG has now renewed 30 per cent of the 32.5 per cent WAQS, with negotiations on the remaining 2.5 per cent expected to be completed in the coming months.

Chief Financial Officer Michelle McPherson said Berkshire Hathaway is a key partner of IAG and the company is pleased to extend its strong relationship,

“The Berkshire Hathaway agreement delivers IAG a materially consistent financial outcome to the original agreement and supports our 15 to 17 per cent medium-term reported margin target,” Ms Hathaway said.

“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.”

Shares in IAG were up 0.84 per cent, trading at $4.80 at market close.