Suncorp Group Limited today provided an update on the financial impact of natural hazard events, including the recent hailstorm in Melbourne, for the six months to 31 December 2017.
Following the hailstorm in Melbourne on 19 December 2017, Suncorp currently expects to receive more than 21,000 claims across its insurance brands including AAMI, GIO, Suncorp, Apia, Shannons and Bingle. The majority of the claims relate to home and motor vehicle damage. The financial impact of the event is expected to be in a range of $160-170 million.
Suncorp’s total natural hazard claim costs (encompassing both Australia and New Zealand) for the six months to 31 December 2017 is currently estimated to be in the range $406-416 million1 which is $60-70 million above the allowance for the half.
Suncorp remains well protected against further natural hazard events. In addition to the main catastrophe program, Suncorp has Natural Hazard Aggregate Protection in place for the 2018 financial year. This provides $300 million of cover once the retained portion of natural hazard events greater than $10 million exceeds a total of $475 million. At 31 December 2017, it is expected that between $259 million and $269 million of the deductable has been eroded. The 2H18 allowance for natural hazards is $346 million.
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