IAG Finalises Catastrophe Reinsurance Program for CY16
Insurance Australia Group Limited (ASX:IAG) announced the finalised details of its catastrophe reinsurance program for CY2016.
The program provided gross reinsurance protection of up to $7 billion during 2015. IAG has been providing an allowance of 20 percent to Berkshire Hathaway as per its quota share agreement which commenced on 1 July 2015.
The reinsurance program for 2016 has been constructed in a similar manner to previous years. Gross protection will remain consistent with its 2015 program. The company aims to maintain a stable overall aggregate exposure, along with modest growth in the underlying business offset by reduced exposure to large-corporate property.
The integrated catastrophe reinsurance program for CY16 will comprise of a main catastrophe cover of losses up to $7 billion which will include one prepaid reinstatement. IAG will retain the first $250 million of each loss. The company has also announced an aggregate sideways cover which reduces the cost of a second event to $175 million and a subsequent event to $25 million.
IAG last traded at $5.54 and has declined approximately 12% during the past one year.
MACA Receives Letter of Intent from Regis Resources
MACA Limited (ASX:MLD) announced that it has received a Letter of Intent from Regis Resources Limited (ASX:RRL) in relation to Open Pit Mining services at its Moolart Well project and other surrounding satellite pits. The agreement will allow MACA to continue its operations with Regis until January 2020.
The project will comprise of open pit mining services, drilling, blasting, loading and hauling services. The duration of the project is expected to be approximately 60 months and is anticipated to generate approximately $115 million in revenue.
MACA’s Operations Director Geoff Baker commented on the company’s alliance with Regis: “We are looking forward to continuing the strong working relationship we have developed with Regis Resources over many years. The contract award in the current competitive environment is a testament to the hard work of our management and employees who have operated on the site over the last 6 years.”
MLD last traded at $0.75 as at 1:48 PM (AEDT) and has risen more than 2.7% since the announcement.
Author: Imran Valibhoy
Jan 04, 2016
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.