The International Group (IG) has confirmed the structure for its Pooling and Group Excess of Loss Reinsurance (GXL) contract for the 2025/26 policy year.
The renewal process accounted for an increase in pool claims activity, which returned to levels seen between 2019 and 2021, alongside challenges from an active hurricane season and high-profile incidents such as the Baltimore Bridge loss.
The GXL program provides extensive coverage, including unlimited protection for most insured risks. The structure for the 2025/26 policy year retains a three-layer format covering US$2 billion in excess of US$100 million.
Individual Club retention has been maintained at US$10 million, with claims between US$10 million and US$100 million pooled among IG Clubs. The first layer covers US$650 million in excess of US$100 million, 25% of which is provided by three private placements, while Layers 2 and 3 cover US$750 million in excess of US$750 million and US$600 million in excess of US$1.5 billion, respectively. These higher layers are fully covered by the open market.
Coverage for pandemic and cyber risks remains free and unlimited up to US$650 million in excess of US$100 million. For claims between US$750 million and US$2.1 billion, two separate aggregate towers provide US$1.35 billion in annual coverage for each of these risk categories.
Hydra, IG’s Bermuda-based reinsurance captive, continues to retain an Annual Aggregate Deductible (AAD) in Layer 1, which is valued at US$107.1 million in 2025/26, unchanged from the prior year.
The IG’s Reinsurance Committee reviewed vessel categories and rates for the upcoming policy year, resulting in adjustments based on historical claims performance. Fully cellular container ships (FCC) experienced the largest rate increase, rising by 23.6%, while clean tankers saw an 8.9% increase.
Other vessel types, including persistent oil tankers, passenger ships, and dry cargo vessels, experienced smaller adjustments.
Excess war protection and indemnity (P&I) coverage has been renewed for 12 months. However, reinsurers continue to exclude coverage for risks in Russia, Ukraine, and Belarus due to the ongoing conflict. To address these exclusions, the IG has purchased US$100 million in aggregated sublimited coverage for risks associated with these regions.
Mike Hall, chairman of the IG’s Reinsurance Committee, acknowledged the complexities of this year’s renewal.
“Thanks to constructive engagement with our leader Axa XL and the rest of our panel of reinsurers we have achieved a fair renewal outcome for all parties. The group places great value on its longstanding relationships with our reinsurers and the fact that we have renewed our program on equitable terms and within the normal timeframe demonstrates the value of this partnership. My thanks to our reinsurers and the IG’s brokers for their continued support,” Hall said.
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