Insurance Australia Gains on Long-Term Reinsurance Deals with Berkshire Hathaway and Canada Life

Insurance Australia Group (IAG) rose 9% on the purchase of reinsurance from Berkshire Hathaway and Canada Life Reinsurance, aiming to stabilize earnings and reduce capital requirements. This agreement provides up to A$680 million in annual protection and up to A$2.8 billion over five years, limiting costs of natural disasters to A$1.28 billion in FY25. IAG's outlook for insurance profit and margin aligns with analyst expectations, and the firm anticipates consistent gross written premiums in line with low-double digit forecasts.