The International Group of P&I Clubs (IG) has finalised its 2025/26 Group Excess of Loss Reinsurance contract (GXL) structure, demonstrating continued support from key reinsurance partners despite a challenging year marked by increased pool claims and an active hurricane season.
Following quieter years for claims in 2022/23 and 2023/24, the 2024/25 policy year has seen a rise in claims activity, including the Baltimore Bridge incident, returning to levels seen from 2019–2021. Additionally, the year has been challenging for reinsurance partners due to an active hurricane season.
The GXL allows IG Clubs to provide extensive free and unlimited coverage for most risks. The IG expressed gratitude to its lead reinsurer, AXA XL, and other long-term reinsurance partners for supporting the renewal.
Mike Hall, Chairman of the IG’s Reinsurance Committee, commented, “The renewal this year has been a challenging one given the Baltimore Bridge loss.
“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 programme 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.”
IG’s $3.1 billion reinsurance tower for 2025/26 maintains three private placements amounting to 25% of Layer 1 of the programme ($650m xs $100m).
For Layers 2 and 3, COVID-19/Pandemic risk cover remains separated from Malicious Cyber aggregated cover.
IG said that for both these risks there continues to be free and unlimited cover for all claims up to $650m xs $100m, and two towers of separate aggregated cover for claims above $750m up to $2.1bn.
The $1 billion Collective Overspill cover excess of the GXL also remains in place.
You can see the reinsurance structure below.
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