IAG halts new Christchurch policies
IAG says it has stopped writing new earthquake insurance policies in Canterbury, following Tuesday's earthquake.
IAG says it has stopped writing new earthquake insurance policies in Canterbury, following Tuesday's earthquake.
Insurer Insurance Australia Group, which owns IAG New Zealand, has put a halt on new earthquake insurance policies in Christchurch to buy itself some time after Tuesday’s deadly earthquake.
IAG chief executive Mike Wilkins said the move was standard industry practice after major disasters.
After the September 4 earthquake in Christchurch, insurers held off writing new insurance cover across parts of the South Island for several months.
While IAG had recently recommenced writing new polices in the Canterbury region, it would now hold off until the area became more stable.
IAG has capped its exposure to this week’s earthquake to $40 million, with reinsurance to cover additional payouts.
Mr Wilkins’ made the comments today as IAG revealed a half-year net profit of $A161 million for the six months to December, less than half the $A329 it earned in the same time last year.
The insurer reported strong operations in New Zealand and Australia during the period, but disappointing performance in the UK.
Some analysts have estimated the damage from New Zealand’s earthquake could exceed $12 billion, making it one of the most expensive natural disasters for global insurers since 2008.