(Adds details of agreement, FY18 guidance, quote)
Dec 8 (Reuters) - Insurance Australia Group Ltd IAG.AX said on Friday that it had entered agreements to share its premiums with reinsurers Munich Re MUVGn.DE , Swiss Re SRENH.S and Hannover Re HNRGn.DE .
Under the agreements, from Jan. 1, 2018, the reinsurers would receive a combined 12.5 percent of the company's consolidated gross earned premium and pay 12.5 percent of claims and expenses, Insurance Australia said in a statement.
The agreements would cover business in Australia, New Zealand and Thailand, and cut its regulatory capital requirement by about A$435 million ($326.73 million) over three years.
The company had entered a similar agreement with Warren Buffet's Berkshire Hathaway (NYSE:BRKa) BRKa.N in 2015 for a 20 percent quota of its insurance business.
"In tandem with the Berkshire Hathaway quota share, we have removed downside earnings risk from 32.5 percent of our business while retaining significant exposure to earnings upside via the profit-share arrangements," Chief Executive Peter Harmer said.
The company raised its reported insurance margin guidance for fiscal 2018 by 125 basis points to the range of 13.75 percent to 15.75 percent, and said its natural perils allowance for the same period would reduce as a result of the agreement.
($1 = 1.3314 Australian dollars)