Insurance Australia Group
(ASX:IAG) estimates the cost of its total net natural peril claims will be $140 million as a result of Tropical Cyclone Debbie.
IAG’s businesses have received around 4,300 claims for mainly property damage in relation to the cyclone plaguing Queensland.
IAG has increased its expectation for FY17 net natural peril claim costs to reach $850 million – compared to the previously held assumption of $680 million.
Therefore, IAG has lowered its FY17 reported insurance margin guidance range. It was 12.5% to 14.5% -- now it’s been reduced to 10.5% to 12.5%.
This morning, IAG shares fell 1.26% to $5.90.
