IAG New Zealand may have to boost Canterbury quake provisions, analysts say
Posted On: Jul. 21, 2015 12:00 AM CSTAnalysts at U.S.-based Citigroup Inc. have said that IAG New Zealand Ltd. may have to boost its provisions to cover Canterbury earthquake claims, reported Interest.co.nz.
The statement comes after the insurer said that it is not expecting to increase the provisions.
IAG had used 97% of its reinsurance cover to pay for the quake at the end of 2014.
In December 2014, the insurer projected its final claims cost with respect to the quakes to rise by between $750 million New Zealand and $1 billion New Zealand ($492.5 million and $656.7 million).