Insurer reveals cyclone damage

Insurer reveals cyclone damage | Insurance Business

Insurer reveals cyclone damage
Suncorp have revealed a “preliminary estimate” of the financial impact of Cyclone Marcia and the floods that followed and it is expected to make the company miss its 2015 financial targets.
 
The company expects claims to reach nearly 10,000 across its insurance brands with the majority of claims relating to damaged homes in Central Queensland in the hardest hit areas of Rockhampton, Yeppoon, Biloela and Maryborough.
 
“The event is expected to cost between $120 million to $150 million (pre-tax), net of the 30% proportional quota share arrangement covering the Queensland home portfolio,” the insurer said in a statement to market.
 
“Including costs of this event, Suncorp expects its natural hazard expenses for the financial year to date to be in the range of $690 million to $720 million.
 
“The Natural Hazard Allowance for the full year to 30 June 2015 is $595 million.”
 
Suncorp Group CEO Patrick Snowball believes the impact of Cyclone Marcia, alongside the Brisbane hailstorm of October, will see the company unable to meet its return on equity target for the financial year of 10%.
 
“It’s disappointing that our return on equity target will unlikely be met, hoewever, the Group remains well placed with a resilient balance sheet, solid underlying earnings and a strong culture focused on supporting customers.
 
“Our immediate and efficient response during these events allows us to deepen relations and attract new customers,” Snowball continued.

IAG also released its latest figures on insurance claims following Cyclone Marcis with approximately 3,500 claims seen across all IAG brands.

Approximately 70% of claims received by IAG have been received through personal insurance brands and the company expects a net claims cost of between $60 million and $90 million, according to a statement released to the ASX.
 
The insurer announcement comes as the Insurance Council of Australia revised its figures for the damage caused by cyclone Marcia.
 
According to the ICA, which tweeted the news, there have now been 13, 512 claims lodged throughout the region with an estimated $83.5 million is losses.
 
Snowball confirmed that, although Suncorp is disappointed with its own economic showing, the customers faced with hardships in Queensland are their top priority.
 
“Our priority is to ensure customers remain safe and are returned to their homes as soon as possible,” Snowball said.
 
“Our panel of builders have already commenced work on some properties as we prioritise displaced, elderly and infirm customers. We have a long and proud history of supporting Queenslanders through major weather events and this is no exception.”