New Zealand's NHC locks in record NZ$12.3B reinsurance for 2026

New Zealand's Natural Hazards Commission Toka Tū Ake (NHC) has secured a record NZ$12.3 billion in reinsurance protection for 2026, a 20% increase from last year's NZ$10.3 billion programme. The NZ$2.1 billion jump reflects strong confidence from global reinsurers in the country's natural hazard insurance scheme, the agency said.

The cover includes NZ$225 million from a multi-year catastrophe bond placed in 2023, which runs through May 2027. NHC said it secured the overall programme on a more cost-effective basis than last year, without providing specific pricing details.

Tina Mitchell, NHC's chief executive, said the result is good news for New Zealand homeowners. "Securing increased reinsurance cover means New Zealand is better placed to respond financially when a major natural hazard event occurs," she said. "It provides confidence that funding will be available to help pay claims and support recovery, while helping protect the Crown's balance sheet."

International reinsurers have choices about where they put capital at risk, Mitchell added. Their willingness to increase support for NHC reflects the strength of the scheme, the quality of its natural hazard science and modelling, ongoing investment in resilience, and the transparency of long-standing engagement with reinsurers, she said.

The record level of cover provides substantial financial protection for New Zealand homeowners in the event of a major disaster. The programme offers peace of mind that the country will have access to funding needed to recover from major natural hazard events and support affected communities, Mitchell said.

The NHC, formerly the Earthquake Commission, provides natural disaster insurance to residential property owners in New Zealand. The reinsurance programme is a key part of its financial framework, designed to ensure it can meet claims from events like earthquakes, volcanic eruptions, and tsunamis.