AIG adds $2bn aggregate catastrophe cover at 1:1

8 January 2018

AIG has made good on its promise to pass more of its risk to the reinsurance market after it purchased a $2 billion aggregate catastrophe cover and international treaty at 1st January.

The cover, placed by Guy Carpenter alongside Aon Benfield, priced with an 8.25% rate-on-line on a $2 billion per $2 billion occurrence basis for the carrier’s US book, according to reports.

The deal marks AIG’s return to a strategy of placing more risk with reinsurers after CEO Brian Duperreault joined the company in a bid to improve its flagging performance last year following the tenure of Peter Hancock.

It also comes on the back of reinsurers’ heaviest losses for years after a series of storms battered the mainland US in the Autumn, causing widespread flooding and property damages across a number of states. re