IAG - A 10-year reinsurance program with Berkshire Hathaway

The Insurance Australia Group (IAG) has signed a quota share reinsurance program for a 10-year period with Berkshire Hathaway. The cession and retention of this quota share are respectively 20% and 80% for the whole IAG portfolio.

This transaction has paved the way for a 500 million USD investment of the Amercian giant in its Australian partner. Berkshire Hathaway has then acquired 3.7% of IAG. The operation allows the Australian group to reduce its capital needs by 700 million USD over the next five years.